Use the Table for the Question(s) Below

question 39

Multiple Choice

Use the table for the question(s) below.
Consider the following expected returns, volatilities, and correlations:

-The expected return of a portfolio that is consists of a long position of $10000 in Wal-Mart and a short position of $2000 in Microsoft is closest to:

• A) 21%
• B) 12%
• C) 27%
• D) 18%