Use the Table for the Question(s)below

question 15

Essay

Use the table for the question(s)below.
Consider the following covariances between securities:
-The variance on a portfolio that is made up of a $6000 investments in Microsoft and a $4000 investment in Wal-Mart stock is closest to:

---

Definitions:

Flexible Budget

A budget that adjusts or varies with changes in the volume of activity, allowing for better control and analysis of performance by comparing actual costs to budgeted amounts at the actual activity level.

Credit Sales

Sales transactions in which the payment is delayed as agreed by both the seller and the buyer.

Cash Collection

The process of gathering all cash payments received from customers, often related to sales or services, improving a company's liquidity.

Budget Slack

The practice of underestimating revenue or overestimating costs while preparing a budget to create a buffer, which can be used to handle unforeseen financial situations.