Use the Table for the Question(s)below

question 46

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 Data#3 and Metcash is closest to:

• A)11%.
• B)8%.
• C)6%.
• D)9%.

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Definitions:

Indirect Method

A cash flow statement approach that adjusts net income for changes in non-cash working capital and other items to calculate operating cash flow.

Cash Flow Classifications

The categorization of cash flows into operating, investing, and financing activities for the purpose of financial reporting and analysis.

Free Cash Flow

The cash a company generates after accounting for cash outflows to support operations and maintain its capital assets.

Net Cash Flow

The amount of cash that is generated or lost by a business in a given period, considering cash inflows and outflows from operating, investing, and financing activities.