What Is the Standard Deviation of the Returns on a $30,000

question 45

Multiple Choice

What is the standard deviation of the returns on a $30,000 portfolio which consists of stocks S and T? Stock S is valued at $21,000.

• A)2.07 percent
• B)2.61 percent
• C)3.36 percent
• D)3.49 percent
• E)3.63 percent

---

Definitions:

Gas Guzzlers

Refers to vehicles that consume fuel inefficiently, often associated with larger, less fuel-efficient cars and trucks.

Selection Bias

a distortion in statistical analysis resulting from the method of collecting samples.

Random Sample

A sample selected from a larger population in such a way that every member has an equal chance of being chosen.

Selection Bias

occurs when the sample is not representative of the population being studied, potentially leading to distorted conclusions.