Use the Table for the Question(s)below

question 23

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 equally invested in Duke Energy and Microsoft is closest to:

• A)28%.
• B)29%.
• C)24%.
• D)23%.

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Definitions:

Rational Model

A decision-making process based on systematic analysis of a problem, identification of options, and logical choice among alternatives.

Holistic Picture

An overall or complete view that considers all factors, elements, or aspects of a situation.

Rational Choice Models

These are analytical frameworks designed to understand social, economic, and political behaviors based on the assumption that individuals choose actions that maximize their utility or benefit.

Self-interest

Acting in a way that is beneficial to oneself, often based on personal gain or advantage.