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:

Licensing Revenue Model

Earning revenue by giving permission to other parties to use protected intellectual property (patents, copyrights, trademarks) in exchange for fees.

Intellectual Property

Legal rights that arise from the intellectual creativity of a person or company, including inventions, literary and artistic works, symbols, names, and images.

Fees

Payments made to professionals or organizations in exchange for their services.

Revenue Streams

Various sources of income that a business receives from its normal business operations or other investments.