What Is the Variance of a Three-Stock Portfolio That Produced

question 29

Multiple Choice

What is the variance of a three-stock portfolio that produced returns of 20 percent, 25 percent and 30 percent?

• A)0.17%
• B)0.33%
• C)0.50%
• D)0.10%

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Definitions:

Contingent Liability

A potential liability that may become an actual liability in the future.

Warranty Expense

Costs associated with the obligation to repair or replace a product due to defects for a specified period.

Bad Debt Expense

An expense account to record uncollectible receivables.

Payroll Activities

The administrative tasks associated with processing employee wages, withholding taxes, and ensuring the accurate calculation of pay.