You Have a Portfolio Which Is Comprised of 35 Percent

question 32

Multiple Choice

You have a portfolio which is comprised of 35 percent of stock A and 65 percent of stock B. What is the standard deviation of this portfolio?

• A) 4.39 percent
• B) 5.68 percent
• C) 6.17 percent
• D) 7.14 percent
• E) 9.08 percent

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Definitions:

Check Clearing

The process by which banks exchange checks and other negotiable instruments drawn on each other and settle their mutual debts and credits.

Lockbox System

A service provided by banks to companies for the receipt of payment from customers, under which payments are directed to a special post office box rather than the company’s address.

Cash Collections

The process of gathering and managing incoming cash payments from customers or clients.

Collection Procedures

The methods and processes used by a company to pursue and collect payments owed by customers.