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:

Fair Trade

A social movement and market-based approach that aims to help producers in developing countries achieve better trading conditions and promote sustainability.

Free Trade

International trading practices characterized by minimal governmental intervention regarding tariffs, allowing for the unobstructed exchange of goods and services.

General Agreement on Trade and Tariffs

An international trade agreement signed in 1947, aimed at reducing tariffs and other trade barriers to promote global economic exchange.

Opportunity Cost

The highest-valued alternative forgone as a result of making a decision to pursue a certain course of action.