The Variance of Returns for a Portfolio of Stocks Is

question 65

Multiple Choice

The variance of returns for a portfolio of stocks is computed by dividing the sum of the

• A)squared deviations by (the number of returns minus one).
• B)average returns by (the number of returns minus one).
• C)average returns by (the number of returns plus one).
• D)squared deviations by the average rate of return.
• E)squared deviations by (the number of returns plus one).

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Definitions:

Agricultural Products

Goods derived from the cultivation of land and the raising of crops and livestock.

Dumping

The practice whereby a company exports a product at a price lower than the price it normally charges in its own home market, often considered as unfair competition.

Exports

Trade goods or services exported from one country to another for commercial exchange or sale.

Trading Partner

A country, group of countries, or an entity with which another conducts trade and business transactions.