What Is the Standard Deviation of a Portfolio's Returns If

question 72

Multiple Choice

What is the standard deviation of a portfolio's returns if the mean return is 15 percent, the variance of returns is 184 percent, and there are three stocks in the portfolio?

• A)7.83 percent
• B)13.56 percent
• C)41.00 percent
• D)225.00 percent

---

Definitions:

Incremental Costs

Costs that change with the level of output or activity, directly associated with a specific business decision.

Product-Cost Distortions

When the allocated costs of producing a product do not accurately reflect the actual resources used, leading to misleading cost information.

Volume-Based

A pricing or costing approach where prices or costs are determined based on the quantity of goods or services produced or sold.

Pricing Errors

Instances where the listed price of a good or service differs from the intended or market appropriate price due to typographical, calculation, or understanding errors.