Which of the Following Is Not Required to Compute the Standard

question 79

Multiple Choice

Which of the following is not required to compute the standard deviation of a two-stock portfolio? Formula is not in the chapter

• A)the variance in returns on each stock
• B)the amount invested in each stock
• C)the correlation between the returns on each stock
• D)the expected return on a risk-free asset

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Definitions:

Embedded

Placed or fixed deeply and firmly within a surrounding mass.

Matrix

(1) In cell biology, the interior of the compartment enclosed by the inner mitochondrial membrane. (2) In zoology, nonliving material secreted by and surrounding connective tissue cells; contains a network of microscopic fibers.

Fibers

Stringy structures in plants that give strength and support; also refers to dietary material containing substances such as cellulose.

Squamous

Referring to flat, scale-like cells that make up the outer layer of the skin and some internal organs.