What Is the Portfolio Variance If 30% Is Invested in Stock

question 15

Multiple Choice

What is the portfolio variance if 30% is invested in stock S and 70% is invested in stock T?

• A).002220
• B).004164
• C).006224
• D).008080
• E).098000

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Definitions:

Future Value

Also known as the compound amount, the total value of an investment; equal to the principal plus all the compound interest.

Equal Amount

A quantity that is the same in size, number, or value when compared to another.

Compounded Quarterly

The process of calculating and adding interest to a principal sum four times a year, leading to compound growth in the interest amount.

Future Value

The projected value of an investment at a future point in time, factoring in specifics like interest rates and compounding periods.