What Is the Standard Deviation of the Returns on a Portfolio

question 28

Multiple Choice

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

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Definitions:

Random Chromosome Alignment

The process during meiosis where chromosomes arrange themselves randomly at the equatorial plate, which contributes to genetic variation.

Maternal Grandmother

The mother of one's mother, a key family member often involved in the upbringing and cultural transmission within families.

Gamete Formation

The process of producing gametes (sperm and eggs) through meiosis, involving the halving of the number of chromosomes.

Diploid Chromosome Number

The total number of chromosomes in a diploid cell, which includes pairs of homologous chromosomes, one inherited from each parent, typical for many organisms.