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:

Present Value

The present value of a future amount of money or series of cash flows, calculated using a designated rate of return.

Guaranteed Amount

A specific sum assured to be paid, often in the context of insurance or investment products, regardless of variable conditions.

Lease Payments

Periodic payments made by a lessee to a lessor for the use of an asset.

Inventory Cost

The total cost incurred to acquire inventory and bring it to its current condition and location, including purchase prices, freight, and handling fees.