What Is the Variance of the Returns on a Portfolio

question 63

Multiple Choice

What is the variance of the returns on a portfolio that is invested 60 percent in stock S and 40 percent in stock T?

• A).000017
• B).000023
• C).000118
• D).000136
• E).000161

---

Definitions:

Money Supply

The entire aggregate of monetary assets available at a certain period in an economy.

Federal Reserve System

The central banking system of the United States, responsible for monetary policy, banking supervision, and financial services.

Policy

A course or principle of action adopted or proposed by an organization or individual.

Board of Governors

A governing body or executive committee that oversees the policy-making, management, and proper conduct of an organization, institution, or central bank.