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

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Definitions:

Fixed Cost

A recurring cost that does not vary with output or sales volume, including expenses like leases and insurance that remain constant no matter the business activity level.

Value Basis

The underlying value on which something is assessed or calculated, often referring to how assets, liabilities, or equity are valued in financial statements.

Unprocessed Wheat

Wheat that has not undergone any form of processing and remains in its natural state post-harvest.

Granary

A granary is a storage facility for threshed grains or animal feed.