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:

Board of Advisors

A group of experienced individuals selected to provide strategic advice and guidance to the management of an organization.

Liability

A financial obligation or responsibility that an individual or entity owes, which may result in the future sacrifice of economic benefits.

Control Resources

Control Resources involves the strategic management and allocation of a company’s assets, human resources, and capital to effectively support operations, maximize efficiency, and achieve organizational goals.

Sunk Costs

Past expenditures that cannot be recovered and should not affect current or future business decisions.