What Is the Standard Deviation of Return of a Four-Stock

question 104

Multiple Choice

What is the standard deviation of return of a four-stock portfolio (each stock being equally weighted) that produced returns of 20%,20%,25%,and 30%?

• A) 2.15%
• B) 3.15%
• C) 4.15%
• D) 5.15%

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Definitions:

Chiefdom

A form of hierarchical political organization in pre-industrial societies ruled by a chief who typically inherits their status.

Formal Authority

The power granted to an individual or organization based on established laws, rules, or positions, enabling them to enforce rules and make decisions.

Military Rank

A hierarchical position in armed forces determining authority, duties, and status.

Inuit Societies

Indigenous peoples living in the Arctic regions of Greenland, Canada, and Alaska, known for their rich culture and adaptation to cold environments.