A Portfolio Consists of Two Securities: a 90-Day T-Bill and the S&P/TSX

question 33

Multiple Choice

A portfolio consists of two securities: a 90-day T-bill and the S&P/TSX Composite.The expected return on the T-bill is 4.5 percent.The expected return on the S&P/TSX Composite is 12 percent with a standard deviation of 20 percent.What is the portfolio standard deviation if the expected return for this portfolio is 15 percent?

• A) 8.13%
• B) 12.00%
• C) 16.80%
• D) 28.00%

Comprehend the concept and calculation of residual income.

Learn the use and implications of return on investment (ROI) for managerial performance evaluation.

Gain insight into the impact of sales changes on margin and turnover.

Recognize the differences between profit, cost, and investment centers in terms of responsibility and performance evaluation.

---

Definitions:

Job Performance

The level of effectiveness and efficiency with which an employee fulfills their job responsibilities and tasks.

Happy Workers

Employees who experience positivity, satisfaction, and well-being in their workplace, contributing to higher productivity and retention.

Productive Workers

Employees who are efficient and effective in their work, contributing significantly to the organization's goals.

Job Dissatisfaction

The feeling of unhappiness or discontentment arising from one's job, often resulting from issues like poor working conditions, low pay, or lack of recognition.