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:

Distribution Activities

The processes involved in making a product or service available for use or consumption by a consumer or business user.

Product

An item or service created through a process and offered to a market to satisfy a want or need.

Joint Venture

A joint venture is a strategic alliance where two or more parties, usually businesses, form a partnership to share markets, intellectual property, assets, knowledge, and profits.

Contractual Arrangement

An agreement between two or more parties that creates enforceable obligations and rights for each party, often documented legally.