What Is the Standard Deviation of the Returns on a $30,000

question 68

Multiple Choice

What is the standard deviation of the returns on a $30,000 portfolio which consists of stocks S and T? Stock S is valued at $21,000.

• A) 2.07 percent
• B) 2.61 percent
• C) 3.36 percent
• D) 3.49 percent
• E) 3.63 percent

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Definitions:

Coin

A flat, typically round piece of metal with an official stamp, used as money or in games.

99.7%

Represents the percentage of data that falls within three standard deviations of the mean in a normal distribution, according to the empirical rule.

Sampling Distribution

the probability distribution of a statistic obtained through a large number of samples drawn from a specific population.

Homeowners

Individuals who own their residence, including houses, apartments, or other dwelling types.