Calculate the Expected Return, Variance, and Standard Deviation for the Following

question 20

Essay

Calculate the expected return, variance, and standard deviation for the following portfolio of four stocks:
$$\begin{array} { | c | c | } \hline \text { Stock 1 } & 16.4 \% \text { retum } \\\hline \text { Stock 2 } & - 9.2 \% \text { retum } \\\hline \text { Stock 3 } & 7.9 \% \text { retum } \\\hline \text { Stock 4 } & 22.0 \% \text { retum } \\\hline\end{array}$$

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Definitions:

Accrued Liabilities

Expenses that have been incurred but not yet paid, recognized on the balance sheet for financial reporting purposes.

Quality Of Income Ratio

A ratio that indicates the proportion of income that has been realized in cash and thus gives an idea of the company's cash flow condition.

Accrual Of Revenue

The recognition of income by a business at the time the revenue is earned, not necessarily when cash is received.

Cash Dividend

A payment made by a company out of its profits to shareholders in the form of cash.