What Is the Standard Deviation of a Portfolio Which Is

question 15

Multiple Choice

What is the standard deviation of a portfolio which is invested 20% in share A, 30% in share B and 50% in share C?
$\begin{array} { | l | l | l | l | l | } \hline & & \multicolumn{3}{|l|} { \text { Returns if State Occurs } } \\\hline \text { State of Economy } & \text { Probability of State of Economy } & \text { Share A } & \text { Share B } & \text { Share C } \\\hline \text { Boom } & 10 \% & 15 \% & 10 \% & 5 \% \\\hline \text { Normal } & 70 \% & 9 \% & 6 \% & 7 \% \\\hline \text { Recession } & 20 \% & 14 \% & 2 \% & 8 \% \\\hline\end{array}$

• A)0.6%
• B)0.9%
• C)1.8%
• D)2.2%
• E)4.9%

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Definitions:

Cultural Differences

Variations in the beliefs, values, habits, and practices of individuals from different backgrounds, which can impact international business and marketing strategies.

Ethical Standards

The principles and values that guide the behavior of individuals and organizations, ensuring conduct that is honest, fair, and respectful to all stakeholders.

Directional Code

A sequence of numbers or letters used to guide or provide directions, commonly seen in postal addresses, maps, or as part of navigational aids.

Competitive Information

Data or insights related to competitors' strategies, products, and market performance, used for strategic planning.