You Have a Portfolio Which Is Comprised of 48% of Stock

question 56

Multiple Choice

You have a portfolio which is comprised of 48% of Stock A and 52% of Stock B. What is the standard deviation of this portfolio?

• A)1.98%
• B)2.06%
• C)2.13%
• D)2.27%
• E)2.30%

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Definitions:

Equity

Ownership interest in a company or property, representing a share of the value after debts are subtracted.

Manufacture Prototypes

The process of creating early models or samples of a product to test its functionality, design, and feasibility.

Chinese Factories

Manufacturing facilities located in China, often noted for their high production capacity and cost-effectiveness.

Low Costs

Refers to strategies or measures implemented to reduce expenses and financial outlays in order to achieve better efficiency or increase profitability.