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:

Hearing

Hearing is the ability to perceive sound by detecting vibrations through an organ such as the ear.

Proximal Stimulus

The stimulus registered by the sensory receptors (e.g., the pattern of light hitting the retina), as opposed to the actual object or event in the external world.

Information Processing

A cognitive approach that likens the mind to a computer, focusing on how people process, store, and retrieve information.

Compare

To examine two or more objects, ideas, or entities to identify similarities and differences between them.