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:

Security Interest

A legal claim or lien on collateral that gives a lender the right to take property if a borrower defaults on their obligations.

Perfection

In legal and financial contexts, refinement is the process of securing an interest in collateral against third parties, often through public registration.

Security Agreement

A legal document that provides a lender a security interest in specified assets of the borrower as collateral for a loan.

Filing

The process of submitting documents to a specified authority or organization for official review or record-keeping.