You Have a Portfolio Which Is Comprised of 40 Percent

question 79

Multiple Choice

You have a portfolio which is comprised of 40 percent of stock A and 60 percent of stock B.What is the portfolio standard deviation?

• A) 4.00 percent
• B) 5.56 percent
• C) 6.06 percent
• D) 6.82 percent
• E) 7.42 percent

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Definitions:

Net Pay

The amount of money a worker takes home after all deductions, such as taxes and retirement contributions, have been subtracted from the gross salary.

Social Security Tax

The amount of Social Security a worker pays depends on the Social Security percentage and the maximum taxable income for that year; the amount is split between the employee and the employer.

Medicare Tax

A federal tax deducted from employees' paychecks to fund the Medicare program, which provides healthcare to seniors.

Federal Withholding

The amount of an employee's pay withheld by the employer and sent directly to the government as partial payment of taxes.