You Have a Portfolio Which Is Comprised of 40% of Stock

question 72

Multiple Choice

You have a portfolio which is comprised of 40% of Stock A and 60% of Stock B. What is the portfolio standard deviation?
$\begin{array}{lllr}\text { State of the Economy } & \text { Probability } &\text {E(R) }_{A}&\text { E(R) }_{B}\\&&40\%&60\%\\\\\text { Boom }&.10&20\%&14\%\\\text { Normal } & .75 & 11\% & 9 \% \\\text { Recegsion } & .15& -20 \% & -5 \%\end{array}$

• A)4.00%
• B)5.56%
• C)6.06%
• D)6.82%
• E)7.95%

Understand the fiscal role of state and local governments versus the federal government.

Describe the administrative burden of tax systems and strategies to mitigate it.

Explain the benefits principle of taxation and its application.

Understand the historical trends in government revenue as a percentage of GDP in the U.S.