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:

Markup

An additional amount incorporated into the buying price of products to compensate for running expenses and gain profit.

Selling Price

The amount of money for which a product or service is sold to the buyer.

Markdown Percentage

The reduction percentage applied to an item's retail price to stimulate sales or clear out inventory.

Hand-painted Stemware

Glassware for drinks that has been decorated by hand with paint, often featuring intricate designs or patterns.