What Is the Standard Deviation of a Portfolio's Returns If

question 72

Multiple Choice

What is the standard deviation of a portfolio's returns if the mean return is 15 percent, the variance of returns is 184 percent, and there are three stocks in the portfolio?

• A)7.83 percent
• B)13.56 percent
• C)41.00 percent
• D)225.00 percent

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Definitions:

ATC

Average Total Cost; it's the total cost per unit of output, calculated by dividing the total cost by the quantity of output produced.

Variable Cost

Expenses that change in proportion to the production volume.

Economic Profit

The difference between total revenue and total costs, including both explicit and implicit costs, reflecting the true profitability of a business.

TR

Total revenue, representing the total sales income a firm receives from selling its goods or services.