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What Is the Standard Deviation of the Returns on a Portfolio

question 82

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What is the standard deviation of the returns on a portfolio that is invested in stocks A,B,and C? Twenty five percent of the portfolio is invested in stock A and 40 percent is invested in stock C. What is the standard deviation of the returns on a portfolio that is invested in stocks A,B,and C? Twenty five percent of the portfolio is invested in stock A and 40 percent is invested in stock C.    A) 6.31 percent B) 6.49 percent C) 7.40 percent D) 7.83 percent E) 8.72 percent


Definitions:

Inverse Demand

A mathematical representation of demand that expresses price as a function of quantity demanded, typically showing how the price will adjust to achieve market equilibrium.

Cournot Duopolists

Firms in a duopoly (a market with only two producers) following Cournot competition, where each firm decides its production level assuming the other's decision as given.

Total Cost

The complete cost of producing a specific number of goods or services, including both fixed and variable costs.

Bean Sprouts

Edible sprouts derived from the germination of beans, commonly used in Asian cuisine.

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