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

question 18

Multiple Choice

If the standard deviation of a portfolio's returns is known to be 30 percent, then its variance is:

• A)5.48 percent.
• B)5.48 percent squared.
• C)900.00 percent.
• D)900.00 percent squared.

Understand the effects of inventory changes on cash flow.

Grasp the impact of accounts payable and receivable changes on the statement of cash flows.

Comprehend the significance of amortization of discounts on bonds and investment, and its reflection on cash flows.

Recognize the implications of changes in liabilities and assets, such as salaries payable and prepaid expenses on cash flow.

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Definitions:

Reduced Costs

refers to decreases in expenses or outlays, often achieved through efficiency improvements, negotiations, or adopting new technologies.

Competitive Advantage

Conditions or aspects that confer on a business a superior or more advantageous situation compared to competitors.

Customized Products

Goods or services specifically tailored to meet the unique preferences or needs of individual customers.

High Quality Standards

The maintenance of excellence and superior standards in products or services.