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:

Temporary Investments

Investments not intended to be held for a long term, such as stocks or bonds, purchased with the intention of selling in the near future.

Accounts Receivable

Money that is owed to a company by its customers for goods or services that have been delivered or used but not yet paid for.

Quick Ratio

A liquidity measure that indicates a company’s ability to pay its current liabilities without relying on the sale of inventory, calculated as (current assets - inventories) / current liabilities.

Liability Likelihood

Refers to the probability that a company will be responsible for payment due to a debt, claim, or lawsuit.