What Is the Variance of Returns of a 3-Stock Portfolio

question 112

Multiple Choice

What is the variance of returns of a 3-stock portfolio (each stock being equally weighted) that produced returns of 20%, 25%, and 30%?

• A) 16.67
• B) 33.33
• C) 50.00
• D)100.00

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Definitions:

Fixed Cost

Expenses that do not change with the level of production or sales, such as rent or salaries.

Production Level

The quantity of goods or services that are produced within a given timeframe by a business.

Fixed Costs

Costs that do not change with the level of production or sales over a certain period.

Volume Of Activity

A measure of the total amount of work performed or output produced in a specific period.