Given the Following Information, What Is the Variance of the Returns

question 27

Multiple Choice

Given the following information, what is the variance of the returns on a portfolio that is invested 40 percent in both stocks A and B, and 20 percent in stock C?

• A) 0.002102
• B) 0.002490
• C) 0.002513
• D) 0.005746
• E) 0.006143

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Definitions:

Population Means

The average value of a particular characteristic in a population.

Normality

A property of a dataset suggesting that it follows a normal or Gaussian distribution.

Quantitative

Pertaining to or expressing data that can be quantified or measured, often dealing with numbers and counts.

Categorical

Pertaining to categories; often used to describe variables that represent data which can be divided into distinct groups, lacking a natural order.