What Is the Variance of Return of a Three-Stock Portfolio

question 24

Multiple Choice

What is the variance of return of a three-stock portfolio (with unequal weights 25%,50%,and 25%) that produced returns of 20%,25%,and 30%,respectively?

• A) 10.00
• B) 12.50
• C) 15.00
• D) 20.00

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Definitions:

M'Naghten Test

A legal standard used to determine whether a defendant was insane at the time of committing a crime, focusing on their ability to understand the nature of the act or distinguish right from wrong.

Substantial Capacity Test

is a legal standard used to determine if an individual has the mental capacity to understand the wrongfulness of their actions for the purpose of establishing criminal responsibility.

Involuntary Act

An action performed by an individual without conscious control, often considered in legal contexts concerning liability.

Arraigned

The legal procedure of formally charging an individual in court and asking for their plea to the charges.