The Stock of a Technology Company Has an Expected Return

question 28

Multiple Choice

The stock of a technology company has an expected return of 15% and a standard deviation of 20% The stock of a pharmaceutical company has an expected return of 13% and a standard deviation of 18%.A portfolio consisting of 50% invested in each stock will have an expected return of 14 % and a standard deviation

• A)less than the average of 20% and 18%.
• B)the average of 20% and 18%.
• C)greater than the average of 20% and 18%.
• D)the answer cannot be determined with the information given.

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Definitions:

Information Technology

The use of computers, storage, networking, and other physical devices, infrastructure, and processes to create, process, store, secure, and exchange all forms of electronic data.

HRM Planning

The process an organization uses to ensure that it has the right amount and the right kind of people to deliver a particular level of output or services in the future.

Operational Activities

The day-to-day tasks and processes that are necessary for an organization to function and achieve its business objectives.

HR Role

The function and responsibilities assigned to the human resources department, including talent acquisition, development, and management.