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

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Definitions:

Marginal Benefits

The incremental value or satisfaction derived from the use of one more unit of a good or service.

Marginal Costs

represent the cost of producing one more unit of a good or service, calculated by the change in total cost that comes from producing one additional unit.

Economic Analysis

The study of how people use resources to produce goods and services for consumption and how those goods and services are distributed and consumed.

Government Policy

The plan of action or regulatory measures formulated and implemented by a governmental entity aimed at achieving specific goals or addressing certain issues within the society.