Use the Table for the Question(s)below

question 52

Multiple Choice

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

-The volatility of a portfolio that is consists of a long position of $10,000 in Wal-Mart and a short position of $2000 in Microsoft is closest to:

• A)9%
• B)14%
• C)11%
• D)12%
• E)10%

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Definitions:

Contribution Format

A type of income statement format that separates fixed costs from variable costs to highlight the contribution margin.

Income Statement

A financial report that shows a company’s revenues, expenses, and net income over a specific period, illustrating the company’s financial performance.

Reconcile

A process of ensuring two sets of records (usually the balances of two accounts) are in agreement.

Variable Costing

A cost accounting method that encompasses solely variable costs involved in production (direct materials, direct labor, and variable manufacturing overhead) for product cost calculation.