A Portfolio Consisting of Four Stocks Is Expected to Produce

question 83

Multiple Choice

A portfolio consisting of four stocks is expected to produce returns of 9%, -11%, 13% and 17%, respectively, over the next four years. What is the standard deviation of these expected returns?

• A) 10.05%
• B) 11.60%
• C) 12.44%
• D) 33.42%

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Definitions:

AT&T Antitrust Case

A landmark legal case in which AT&T, once a telecommunications monopoly, was forced to divest its regional subsidiaries (“Baby Bells”) in 1984 due to antitrust violations.

Alcoa Case

A landmark antitrust case in U.S. law, where the Aluminum Company of America (Alcoa) was found to have monopolized the aluminum market, leading to significant legal and economic discussions on competition.

Unreasonably Restrain Trade

Legal term used in antitrust law to describe business practices that prevent or reduce competition in a market, considered illegal under various trade laws.

Alcoa Case

A landmark United States antitrust case involving the Aluminum Company of America (Alcoa), which set a precedent for evaluating monopolistic practices based on market control.