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

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What is the variance of returns of a 3-stock portfolio (with unequal weights 25%, 50%, and 25%) that produced returns of 20%, 25%, and 30%, respectively?


Definitions:

Total Assets Ratio

A financial metric used to assess the proportion of a company's assets that are financed by its shareholders.

Average Total Assets

Average total assets is a metric that represents the average value of all the assets owned by a company over a specific time period, indicating the company's asset size and usage efficiency.

Financing Activities

Transactions that involve raising capital and repaying investors, influencing the equity and debt of a company.

Operating Activities

Activities that constitute the primary or main activities of a business, directly related to its operations and core business activities.

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