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:

Serrations

The tooth-like projections found on the edge of a tool, such as a knife or saw, designed to make cutting more efficient.

Fasting

A practice of voluntarily abstaining from all or some kinds of food or drink, usually for a specific period of time, often practiced for religious, health, or medical reasons.

Nausea

A feeling of sickness with an inclination to vomit, often a symptom of other conditions or side effects of medication.

Vomiting

The forceful expulsion of stomach contents through the mouth, which can be a symptom of various conditions or diseases.