Use the Table for the Question(s)below

question 92

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 Webjet and Data#3 is closest to:

• A)7.6%.
• B)0.6%.
• C)22.4%.
• D)5.0%.

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Definitions:

Automatic Stabilizer

Economic policies and programs, such as unemployment insurance, that automatically adjust to counteract economic fluctuations without the need for explicit government intervention.

Automatic Stabilizers

Economic policies and programs, such as unemployment insurance and taxation, that automatically adjust with economic conditions to stabilize income and spending.

Recession

An interval of momentary economic contraction characterized by decreased commercial and industrial operations, commonly signaled by a reduction in Gross Domestic Product over two back-to-back quarters.

Government Budget Deficit

The financial situation that occurs when a government's expenditures exceed its revenues in a given fiscal year.