Assume a Portfolio Has the Possibility of Returning 7%, 8

question 45

Multiple Choice

Assume a portfolio has the possibility of returning 7%, 8%, 10%, or 12%, with likelihood of 20%, 30%, 25%, and 25%, respectively. The standard deviation for the portfolio is:

• A)5.717%.
• B)3.510%.
• C)1.873%.
• D)6.480%.
• E)3.842%.

---

Definitions:

Tolerance

The capacity to accept or endure differences, existence, or practices without interference, discrimination, or hostility.

Methamphetamines

A highly addictive stimulant drug that affects the central nervous system, leading to increased activity, decreased appetite, and a sense of euphoria.

Dependence

A condition characterized by the compulsive use of a substance or engagement in a behavior, leading to psychological or physical reliance.

Energetic

Exhibiting or involving a high level of energy or activity.