THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION

question 113

Multiple Choice

THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION:
Investment A has an expected return of 8% with a standard deviation of 2.5%.Investment B has an expected return of 6% with a standard deviation of 1.2%.Assume you invest equally in both investments and that the rates of return are independent.
-What is the standard deviation of the return on your portfolio? Assume that the returns on the two investments are independent.

• A)2.77
• B)2.50
• C)7.69
• D)6.25

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Definitions:

Historical Perspective

A viewpoint that involves looking at current events or situations in the context of historical developments.

Non-Value-Added Activities

Activities that consume resources but do not add value for which customers are willing to pay.

Overhead Costs

General business costs not directly related to creating a product or service, such as rent, utilities, and insurance.

Management Cycle

A series of business activities and processes that managers use to plan, lead, organize, and control operations.