What Is the Variance of a Portfolio Consisting of $2,000

question 47

Multiple Choice

What is the variance of a portfolio consisting of $2,000 in stock B and $8,000 in stock C?

• A) .00000
• B) .00084
• C) .00108
• D) .00132
• E) .00197

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Definitions:

Cost Reduction

Refers to strategies and actions a company undertakes to decrease its total expenses and improve profitability.

Incremental Sales

The additional sales generated from a specific marketing campaign, promotional offer, or product launch, distinguishing these sales from the base level of sales.

Required Return

The minimum rate of return an investor expects to receive from an investment, considering the risk involved.