What Is the Standard Deviation of Returns of a 4-Stock

question 10

Multiple Choice

What is the standard deviation of returns of a 4-stock portfolio (each stock being equally weighted) that produced returns of 20%, 20%, 25%, and 30%?

• A) 2.15%
• B) 3.15%
• C) 4.15%
• D)5.15%

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Definitions:

Atlas

The first cervical vertebra of the spine, supporting the skull and allowing the head to nod and rotate.

Anterior Part

The front aspect or part of something, often referred to in the context of the body.

Vertebra

A bone in the spine that forms part of the vertebral column.

Vertebral Arch

The posterior part of a vertebra that encircles the spinal canal, composed of pedicles and laminae.