A Portfolio Consisting of Four Stocks Is Expected to Produce

question 94

Multiple Choice

A portfolio consisting of four stocks is expected to produce returns of -9%, 11%, 13% and 17%, respectively, over the next four years.What is the standard deviation of these expected returns?

• A)10.05%
• B)11.60%
• C)8.00%
• D)33.42%

Understand the concept of dividend payments and their calculation based on stock type and declared rates.

Calculate the change in investment value from conversions or stock price changes.

Interpret fundamental stock listing information, such as PE ratio, rate of yield, and closing prices.

Calculate the gain or loss from the sale of shares.

---

Definitions:

Dell P.C.

Dell P.C. refers to personal computers manufactured by Dell Inc., an American multinational computer technology company known for developing, selling, repairing, and supporting computers and related products and services.

Comparative Advantage

Total output is greatest when each product is made by the country that has the lowest opportunity cost.

Free Trade

The absence of artificial (government) barriers to trade among individuals and firms in different nations.

Economic Inefficiency

A situation where resources are not allocated optimally, leading to waste or loss in the potential value of output.