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Use the Table for the Question(s) Below

question 39

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


Definitions:

Total Revenues

The total amount of income generated by the sale of goods or services related to a company's primary operations.

Marginal Revenue Product

The additional revenue generated from using one more unit of a factor of production, holding all other factors constant.

Law of Diminishing Returns

This economic law states that after a certain point, successive increments of a single factor of production yield progressively smaller increases in output.

Competitive Market

A market environment where numerous producers and consumers interact, leading to price competition and variety in products.

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