Consider the Following Expected Returns, Volatilities, and Correlations: the Expected

question 61

Multiple Choice

Consider the following expected returns, volatilities, and correlations: The expected return of a portfolio that is equally invested in Duke Energy and Microsoft is closest to ________.

• A)15%
• B)14%
• C)30%
• D)45%

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Definitions:

Economic Strategy

A plan of action designed to achieve specific financial or market objectives.

Exports

Items or services that are manufactured in one nation and purchased by consumers in a different country.

Imports

Goods or services brought into a country from abroad for sale or use.

Consumer Surplus

The difference between what consumers are willing to pay for a good or service versus what they actually pay, representing a measure of consumer benefit.