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%

---

Definitions:

Work in Process Inventory

Represents goods that are partially completed in the manufacturing process, not yet ready for sale.

Direct Labor Variances

The difference between the estimated cost of direct labor and the actual direct labor cost incurred.

Controllable Variance

Controllable variance is a measure used in managerial accounting to assess the differences between actual and budgeted amounts that management can influence or control.

Variable Overhead Costs

Variable overhead costs fluctuate with changes in production volume, including costs like utilities and raw materials not directly tied to a product.