Use the Table for the Question(s) Below

question 78

Multiple Choice

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 $6,000 investment in Duke Energy stock and a $4,000 investment in Wal-Mart stock is closest to:

• A) 0.050
• B) 0.045
• C) 0.051
• D) -0.020

---

Definitions:

Marginal Benefit

The enhanced pleasure or utility that comes from consuming an extra unit of a product or service.

Marginal Cost

The cost incurred by producing one additional unit of a product or service, crucial for decision-making in production levels.

Optimal Amount

The ideal quantity of a resource or good that achieves the best outcome or utility.

Positive Externalities

Benefits that result from a commercial activity or action but affect uninvolved third parties who did not choose to be involved in the transaction.