Use the Following to Answer the Question(s) Below

question 20

Multiple Choice

Use the following to answer the question(s) below.
As a result of the financial crisis in the fall of 2008, when the government intervened to help the economy, an investor was considering various strategies for her money and the estimated profits would depend on how successful the intervention would be in helping the economy. The estimated annual return for two different investment strategies are shown in the following table.
-The standard deviation associated with the investment strategy of allocating 80% to stocks and 20% to bonds is

• A) $4,500.
• B) $2,250.
• C) $3,473.
• D) $2,567.
• E) $1,782.

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Definitions:

Market Exit

The process of a company or business stopping operations or leaving a specific market or industry.

Concentration Ratio

The share of industry output in sales or employment accounted for by the top firms.

Industry Output

The total production or quantity of goods and services produced within a specific industry over a given period.

Top Firms

The leading or most successful companies in a particular industry or sector based on criteria like revenue, innovation, market share, or profitability.