Consider the Following Expected Returns, Volatilities, and Correlations: the Volatility

question 17

Multiple Choice

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) 8.1%
• B) 9.0%
• C) 10.8%
• D) 5.4%

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Definitions:

Visual Cues

Environmental signals perceived by the visual system that can influence perception and behavior.

Both Eyes

Refers to the use of binocular vision, where both eyes are used together to perceive depth and a wider field of view.

Horizontal Lines

Lines that run parallel to the horizon or ground level, often used in art and design to convey stability and calmness.

Vertical Lines

Lines that run up and down the page or canvas, often used in art and design to convey strength and stability.