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

question 18

Multiple Choice

If the standard deviation of a portfolio's returns is known to be 30 percent, then its variance is:

• A)5.48 percent.
• B)5.48 percent squared.
• C)900.00 percent.
• D)900.00 percent squared.

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Definitions:

"80/20" Rule

The Pareto Principle, which posits that roughly 80% of effects come from 20% of causes, applied in various contexts such as business and time management.

Guided Imagery

A technique used in psychology and meditation where an individual is guided through a series of visualizations to promote relaxation, change behaviors, or improve performance.

Progressive Muscle Relaxation

A relaxation technique that involves tensing and then slowly relaxing various muscle groups throughout the body to reduce stress and anxiety.

Stress Management Strategies

Techniques or methods used to control an individual's level of stress, often for the purpose of improving everyday functioning.