What Is the Variance of Return of a Three-Stock Portfolio

question 24

Multiple Choice

What is the variance of return of a three-stock portfolio (with unequal weights 25%,50%,and 25%) that produced returns of 20%,25%,and 30%,respectively?

• A) 10.00
• B) 12.50
• C) 15.00
• D) 20.00

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Definitions:

Genes

Units of heredity made up of DNA that are responsible for the inherited characteristics in living organisms, dictating the development and functioning of organisms.

Selective Breeding

The process by which humans use animal and plant breeding techniques to selectively develop particular phenotypic traits by choosing which typically animal or plant males and females will sexually reproduce.

Eugenics

A set of beliefs and practices aimed at improving the genetic quality of the human population, historically associated with morally controversial methods and ideologies.

Cloning

A process of creating a genetically identical copy of an original organism or gene.