What Is the Standard Deviation of the Returns on a Portfolio

question 18

Multiple Choice

What is the standard deviation of the returns on a portfolio that is invested 52 percent in stock Q and 48 percent in stock R?

• A)1.66 percent
• B)2.47 percent
• C)2.63 percent
• D)3.28 percent
• E)3.41 percent

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Definitions:

Production Department

The division within a business that is charged with the manufacture of goods or the provision of services.

Materials Consumed

The direct raw materials used in the production process during a specific period.

Conversion Costs

Expenses incurred during the transformation of raw materials into finished products, including labor and overhead.

Equivalent Unit

A concept used in cost accounting to standardize units of production, facilitating the calculation of costs per unit in processes producing heterogeneous outputs.