Jillian was recently hired by a major retail store. Her job is to determine the probability
that individual customers will fail to pay for their charge sales. Jillian's job best relates
to which one of the following?
A.terms of sale
Which one of the following statements is correct concerning a portfolio of 20 securities
with multiple states of the economy when both the securities and the economic states
have unequal weights?
A.Given the unequal weights of both the securities and the economic states, the
standard deviation of the portfolio must equal that of the overall market.
B.The weights of the individual securities have no effect on the expected return of a
portfolio when multiple states of the economy are involved.
C.Changing the probabilities of occurrence for the various economic states will not
affect the expected standard deviation of the portfolio.
D.The standard deviation of the portfolio will be greater than the highest standard
deviation of any single security in the portfolio given that the individual securities are
E.Given both the unequal weights of the securities and the economic states, an investor
might be able to create a portfolio that has an expected standard deviation of zero.
Which one of the following securities is used as a means of investing in a foreign stock
that otherwise could not be traded in the United States?
A.American Depository Receipt