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:

R-chart

A control chart used for monitoring the variability of a process.

Control Limits

Boundaries in process control, within which a process operates efficiently, used to detect signals or causes of variations that could indicate a problem.

Sample Size

The total count of individual samples or observations used within a research study or experiment, critical for the reliability of results.

Control Chart

A graph used to study how a process changes over time, showing plotted values of some statistical measure against time to identify outliers or trends.