Post Utme Rhema University 2023 Commerce Question 1

Practice objective / multiple choice question 1 from the 2023 Post Utme Rhema University Commerce examination.

Post Utme Rhema University 2023 Commerce Objective / Multiple Choice
Question 1 POST_UTME_RHEMA_UNIVERSITY • 2023 • COMMERCE • objective

A company has a portfolio of 10 stocks with an average return of 8% and a standard deviation of 12%. If the company wants to diversify its portfolio by adding a new stock, which of the following stocks would be the best choice?

Answer Options

A. Stock A with a return of 10% and a standard deviation of 15%
Correct Answer B. Stock B with a return of 12% and a standard deviation of 18%
C. Stock C with a return of 9% and a standard deviation of 13%
D. Stock D with a return of 11% and a standard deviation of 16%
Correct Answer
B
Correct Option:
Stock B with a return of 12% and a standard deviation of 18%

About This Question

This is Post Utme Rhema University 2023 Commerce Question 1. It is one of the objective questions from the 2023 Post Utme Rhema University Commerce examination.

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