Consider a Portfolio That Consists of an Equal Investment in 20

question 93

Multiple Choice

Consider a portfolio that consists of an equal investment in 20 firms.For each of these firms,there is a 70% probability that the firms will have a 16% return and a 30% that they will have a - 8% return.Each of these firms returns are independent of each other.The standard deviation of this portfolio is closest to:

• A) 2.5%
• B) 4.2%
• C) 8.8%
• D) 11.0%

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Definitions:

Kpelle Chiefdoms

A historical political organization of the Kpelle people, primarily located in Liberia and Guinea, characterized by hierarchical leadership structures.

State Government

The organized system of leadership and authority within a specific state, responsible for making and enforcing laws, and managing public services and resources.

Internationally Recognized States

Countries that are acknowledged by a majority of other nations as sovereign entities with a defined territory, permanent population, governing body, and the capacity to engage in relations with other states.

Rule Of Law

The principle that all members of a society, including those in government, are equally subject to publicly disclosed legal codes and processes.