What Is the Standard Deviation of the Returns on a $30,000

question 3

Multiple Choice

What is the standard deviation of the returns on a $30,000 portfolio which consists of stocks S and T? Stock S is valued at $21,000.

• A)2.07 percent
• B)2.61 percent
• C)3.36 percent
• D)3.49 percent
• E)3.63 percent

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Definitions:

Equilibrium Level

The state in a market where supply equals demand, and there are no external forces causing disruption, leading to a stable price.

Unconscionable Rate

A term often used to describe exorbitantly high rates or charges that go beyond what is reasonable or legally permissible, typically in the context of loans or credit.

Exorbitant Rate

An excessively high and unreasonable rate, often used in reference to interest rates or prices.

Equilibrium Price

The price at which the quantity of a good or service demanded equals the quantity supplied, meaning there is no excess supply or demand.