What is the standard deviation of a portfolio's returns if the mean return is 15 percent, the variance of returns is 184, and there are three stocks in the portfolio?
A)7.83 percent
B)13.56 percent
C)41.00 percent
D)225.00 percent standard deviation =

Question

Quizplus · Accepted Answer

To find the standard deviation, we need to take the square root of the variance. Since there are three stocks in the portfolio, we need to adjust the variance by dividing by the number of stocks minus one (i.e., 3-1 = 2). Therefore, the standard deviation is:
√(184/2) = 13.56%
So, the answer is B.

What Is the Standard Deviation of a Portfolio's Returns If