What Is the Variance of Returns of a Portfolio That

question 8

Multiple Choice

What is the variance of returns of a portfolio that produced returns of 20%,25%,and 30%,respectively?

• A) 10.00
• B) 16.7
• C) 15.00
• D) 20.00

Understand the implications of credit policy on bad debts and accounts receivable performance (ACP).

Recognize the use of financial mechanisms to manage and optimize cash flow, like ZBAs and lockbox systems.

Understand the various inventory management concepts including economic order quantity, safety stock, JIT systems, and their impact on a firm’s cash flow and operational efficiency.

Understand the difference between various financial instruments including promissory notes, lines of credit, and revolving credit agreements.

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Definitions:

Parsimonious

Referring to the principle in science and philosophy where the simplest explanation or strategy tends to be the right one.

Replicable

The ability of a study or experiment to be repeated and yield the same results.

Falsifiable

A criterion of the scientific method stating that for a proposition to be considered scientifically valid, it must be possible to conceive an observation that could prove the proposition false.

Psychoanalytic

Pertaining to a therapeutic and theoretical approach originated by Sigmund Freud that emphasizes unconscious motivations and conflicts in understanding human behavior.