Use the Table for the Question(s) Below

question 54

Multiple Choice

Use the table for the question(s) below.
Consider the following expected returns, volatilities, and correlations:
-Consider a portfolio consisting of only Duke Energy and Microsoft.The percentage of your investment (portfolio weight) that you would place in Duke Energy stock to achieve a risk-free investment would be closest to:

• A) 15%
• B) 4%
• C) 23%
• D) 10%

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Definitions:

Operating Costs

Expenses associated with the routine functioning of a business or system.

Long-Term Gains

Profits or advantages achieved over an extended period, contrasting with immediate or short-term benefits.

Cost of Goods Sold

An accounting term referring to the direct costs attributable to the production of goods sold by a company.

Rent Expense

A periodic payment made by a tenant to a landlord for the use of premises, buildings, or land.