Use the Table for the Question(s)below

question 90

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 equally invested in Duke Energy and Microsoft is closest to:

• A)8%
• B)9%
• C)11%
• D)6%
• E)7%

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Definitions:

Direct Write-Off Method

An accounting method where bad debts are written off as an expense only when they are deemed to be uncollectable.

Bad Debt Expense

The estimated amount of credit sales that a company does not expect to collect due to customer's inability to fulfill payment obligations.

Uncollectible

Financial term referring to accounts receivable that are considered unlikely to be collected due to debtor default.

GAAP

Generally Accepted Accounting Principles; a collection of commonly-followed accounting rules and standards for financial reporting.