A Security Returns 5%, 4%, 3% and 6% Over Four

question 37

Multiple Choice

A security returns 5%, 4%, 3% and 6% over four years. The standard deviation of returns of the security is:

• A)1.51%.
• B)1.00%.
• C)1.29%.
• D)1.11%.

---

Definitions:

Contract

A formal or legally binding agreement between two or more parties that outlines obligations, rights, and terms governing a particular arrangement.

Partnership

An authorized business entity formed by two or more persons, sharing both the management duties and the earnings.

Winding Up Partners

The process of settling the accounts and liquidating the assets of a partnership for the purpose of dissolving the partnership.

Disagree

To have a difference of opinion or conflicting views about a particular subject.