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

question 23

Multiple Choice

What is the standard deviation of a portfolio's returns if the mean return is 15%, the variance of returns is 184, and there are three stocks in the portfolio?

• A) 7.83%
• B) 13.56%
• C) 41.00%
• D)225.00%

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Definitions:

Ambient

Referring to the surrounding area or environment, often used to describe temperature, light, or sound conditions around a device or system.

Correction

The process of adjusting something to correct errors or inaccuracies.

Parallel

A configuration in an electrical circuit where components are connected across common points or junctions, leading to equal voltage across them but potentially different currents through each component.

Series

A configuration in which electrical components are connected end-to-end in a single path for the electric current to flow through.