What Is the Variance of the Returns on a Portfolio

question 21

Multiple Choice

What is the variance of the returns on a portfolio that is invested 60 percent in stock S and 40 percent in stock T?

• A).000017
• B).000023
• C).000118
• D).000136
• E).000161

Understand the process of estimating cost behaviors and the role of cost drivers.

Define and explain the relevance of the 'relevant range' in cost behavior.

Differentiate between variable, fixed, step-fixed, and semi-variable costs.

Compare least squares regression (simple) and multiple regression as cost estimation methods.

---

Definitions:

Streptococcal Infection

An infection caused by Streptococcus bacteria, which can result in a wide range of diseases, from mild sore throats to life-threatening conditions.

Frenulum

A small fold of tissue that secures or restricts the motion of a mobile organ in the body.

Crypts

Small, pit-like depressions or pockets on the surface of the tonsils, which can collect debris and contribute to tonsil infections.

Involuted Tonsils

Tonsils that have undergone reduction in size or have become less prominent, often due to normal aging or resolved inflammation.