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

question 8

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 Mean =

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Definitions:

Financial Statements

Documents that provide an overview of a company's financial condition, including the balance sheet, income statement, and cash flow statement.

Cash Balance

The amount of cash a company or individual has available after all transactions have been accounted for.

Withdrawal

The act of taking money from an account, or the removal of assets or resources, often applicable in banking and partnerships.

Telephone Bill

A telephone bill is a periodic charge levied on individuals or businesses for the use of telecommunication services.