What Is the Standard Deviation of the Returns on a Portfolio

question 71

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:

Chi-Square Value

A statistical measure used in tests of independence and goodness of fit, indicating how expectations compare to actual observed data.

Degrees of Freedom

Degrees of freedom refer to the number of independent values or quantities that can vary in an analysis without breaking any constraints.

Contingency Table

A data table that displays the frequency distribution of the variables.

Expected Frequency

In statistics, the predicted count of occurrences in a category of a contingency table based on probabilities derived from a theoretical distribution.