What Is the Variance of the Returns on a Portfolio

question 86

Multiple Choice

What is the variance of the returns on a portfolio comprised of $5,400 of stock G and $6,600 of stock H?

• A) .000709
• B) .000848
• C) .001475
• D) .001554
• E) .001568

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Definitions:

Delta

In electrical engineering, refers to a method of connecting three-phase circuits where the ends of each coil are connected in a triangle or delta shape, allowing for the use of each phase.

Delta Connected

A three-phase connection method where the end of each coil connects to the beginning of another, forming a closed loop that resembles the Greek letter Delta (Δ).

Phase Voltage

The voltage measured across a single component in a polyphase system, representing one phase of the system.

Line Voltage

The voltage measured across any two phase wires in a multi-phase electrical system.