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

question 113

Multiple Choice

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

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

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Definitions:

Processes

The series of actions, changes, or functions that bring about a result or are involved in the way natural phenomena occur.

Sedimentary Rocks

Rocks formed by the accumulation and compression of sediment, which may include minerals, organic matter, and fragments of other rocks.

Exposed Surface

An area where materials such as rock, soil, or sediment are not covered by vegetation or man-made structures and are visible.

Igneous Rocks

Rocks formed by the cooling and solidification of magma or lava, characterized by a crystalline texture.