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:

Implied Warranty

A legal term for the guarantee or promise that a product will meet a minimum level of quality and functionality without being explicitly stated.

Particular Purpose

In a legal context, this refers to a specific use for which a product or service is intended or for which it is being sold to a consumer, who relies on the seller’s expertise.

Merchantability

A guarantee that a product will meet reasonable expectations of quality and usability for its intended purpose when sold.

Implied Warranty

A legal term referring to the assurances that a product will perform as expected, even though not explicitly stated by the seller.