* Use the Following Information to Solve the Next Two

question 2

Essay

* Use the following information to solve the next two problems *
$$\begin{array} { | c | c | c | c | } \hline & & & \text { Correlation with } \\\hline \text { Asset } & \text { Expected Return } & \text { Std. Dev. w Return } & \text { Eneroy ETF } \\\hline \text { EneroyETF } & 6.8 \% & 21.2 \% & 1.0 \\\hline \text { Technology ETF } & 12.4 \% & 37.9 \% & 0.34 \\\hline\end{array}$$
-Find the standard deviation for a portfolio that is 70% invested in the energy ETF and 30% in the technology ETF.

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Definitions:

Contribution Margin

The selling price per unit, minus the variable cost per unit, indicating how much a product contributes towards covering fixed costs and generating profit.

Simulation Analysis

A process of modeling a real-world system or process through a computer program to study its behavior under various conditions.

Scenario Analysis

The process of examining and evaluating possible events or scenarios that could affect the outcome of a decision or investment.

Operating Cash Flow

Cash generated by a company’s normal business operations, indicating whether a company can generate sufficient positive cash flow to maintain and grow its operations.