What Is the Standard Deviation of the Returns on a Portfolio

question 12

Multiple Choice

What is the standard deviation of the returns on a portfolio that is invested 52 percent in stock Q and 48 percent in stock R?

• A) 1.66 percent
• B) 2.47 percent
• C) 2.63 percent
• D) 3.28 percent
• E) 3.41 percent

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Definitions:

Input Prices

The costs associated with the factors of production used in the creation of goods or services, such as raw materials and labor.

Marginal Product

The additional output produced when one additional unit of a resource is employed.

Minimizing Costs

Minimizing costs involves finding the most efficient way to operate that lowers expenses without sacrificing the quality or quantity of output.

Rental Rate

The price paid for the temporary use of a good, service, or property, typically expressed as a fee per time period.