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:

Retained Earnings

Earnings not paid out as dividends but instead reinvested in the company or used to pay off debt.

Total Assets

The combined value of everything a company owns, both current and non-current, as reported in the balance sheet.

Total Revenues

The total amount of income generated by the sale of goods or services before any expenses are subtracted.

Reversing Entries

These are journal entries made at the beginning of an accounting period to reverse or cancel out adjusting entries made at the end of the previous accounting period.