Use the Table for the Question(s)below

question 82

Essay

Use the table for the question(s)below.
Consider the following expected returns,volatilities,and correlations:
-Consider a portfolio consisting of only Microsoft and Wal-Mart stock.Calculate the expected return on such a portfolio when the weight on Microsoft stock is 0%,25%,50%,75%,and 100%

---

Definitions:

Corporation Accounting

Accounting practices specific to corporations, including handling of equity, dividends, and corporate taxes.

Goodwill Recognition

The accounting process of recording the value of goodwill, which represents the intangible value acquired when a business is purchased for more than the fair value of its net identifiable assets.

Ownership Change

An event where the controlling interest in a company's shares is transferred from one party to another.

Theoretical Argument

An argument based on a theory, presenting a systematic set of ideas to explain phenomena or justify reasoning.