What Is the Standard Deviation of the Returns on a Portfolio

question 8

Multiple Choice

What is the standard deviation of the returns on a portfolio that is invested 52 percent in stock Q and 48 percent in stock R?

• A)1.66 percent
• B)2.47 percent
• C)2.63 percent
• D)3.28 percent
• E)3.41 percent

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Definitions:

Price Level

A measure of the average prices of goods and services in the economy at a given time.

Output

The total amount of goods and services produced by an economy, a sector, or a company over a specific period of time.

Real Wages

Wages adjusted for inflation, representing the purchasing power of wages in terms of goods and services, unlike nominal wages which are not adjusted for inflation.

Unemployment

The situation in which individuals who are capable of working and are actively seeking work but are unable to find a job.