You Have a Portfolio Which Is Comprised of 48 Percent

question 33

Multiple Choice

You have a portfolio which is comprised of 48 percent of stock A and 52 percent of stock B.What is the standard deviation of this portfolio?

• A) 1.98 percent
• B) 2.06 percent
• C) 2.13 percent
• D) 2.27 percent
• E) 2.30 percent

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Definitions:

Paid-In Capital

Paid-In Capital is the amount of money that shareholders have invested in a company through the purchase of stock, exclusive of earnings retained in the business.

Par Value

The nominal or face value of a bond, share of stock, or other securities, as stated by the issuing company.

Paid-In Capital

The total amount of money shareholders have invested in a company through the purchase of stock, excluding the par value of any preferred or common stock.

Preferred Stock

A class of ownership in a corporation that has a higher claim on assets and earnings than common stock, often with fixed dividends.