What Is the Variance of Return of a Three-Stock Portfolio

question 24

Multiple Choice

What is the variance of return of a three-stock portfolio (with unequal weights 25%,50%,and 25%) that produced returns of 20%,25%,and 30%,respectively?

• A) 10.00
• B) 12.50
• C) 15.00
• D) 20.00

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Definitions:

Cumulative Probability

This term refers to the probability that a random variable is less than or equal to a specified value.

Binomial Coefficients

The coefficients that appear in the binomial theorem, representing the number of ways to choose a subset of elements from a larger set, without regard to the order of selection.

Speed Limits

Speed limits refer to the maximum legal speed at which vehicles may travel on a particular stretch of road.

IUPAC Name

Naming chemical compounds systematically in accordance with the standards set by the International Union of Pure and Applied Chemistry.