Use the Table for the Question(s)below

question 25

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)40%
• C)23%
• D)10%

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Definitions:

T Scores

Standardized scores on psychological and educational tests that have a mean of 50 and a standard deviation of 10, used to compare individual performance against a normative sample.

Sten Scores

Derived from the name “standard 10,” a standard score that is commonly used on personality inventories and questionnaires. Stens have a mean of 5.5 and a standard deviation of 2.

Standard Error of Measurement (SEM)

The standard error of measurement (SEM) is an estimate of the variation in scores due to measurement error, indicating how repeated measures of a person on the same instrument might differ.

T Score

A type of standardized score that has been adjusted to fit a normal distribution, typically with a mean of 50 and a standard deviation of 10.