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volatility of a balanced portfolio

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volatility of a balanced portfolio

by piyush_nitt » Wed Apr 22, 2009 4:01 am
The volatility of a balanced portfolio of stocks and bonds, less than 80 percent of the overall stock market.



a. The volatility of a balanced portfolio of stocks and bonds, less than 80 percent of the overall stock market.

b. A balanced portfolio of stocks and bonds is less than 80 percent as volatile as the overall stock market.

c. A balanced portfolio of stocks and bonds is less than 80 percent as volatile as that of the overall stock market.

d. Volatility is less than 80 percent for a balanced portfolio of stocks and bonds compared to the overall stock market.

e. The volatility of a balanced portfolio of stocks and bonds is less than 80 percent of the overall stock market.


OA: [spoiler]B why not C?[/spoiler]
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by ritish » Wed Apr 22, 2009 4:07 am
is the answer D?
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by scoobydooby » Wed Apr 22, 2009 6:48 am
between B & C

a portfolio is a sample chosen from the population. overall stock market is the population, and the sample is the 'balanced portfolio'

C: the "that" refers to the portfolio(sample) of the overall stock market (population). we do not need to use the "portfolio" for the overall stock market, its ok to compare the portfolio to the overall market.

B: better as its more concise and does away with the needless "that"
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by shibal » Wed Apr 22, 2009 9:37 am
the 'that' in C is redundant
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