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

question 45

Multiple Choice

Consider the following expected returns, volatilities, and correlations: The volatility of a portfolio that is equally invested in Wal-Mart and Duke Energy is closest to ________.

• A) 4.0%
• B) 0.7%
• C) 6.7%
• D) 20.1%

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Definitions:

Daily Sandwich Sales

The quantity of sandwiches sold in a day, typically used to track business performance over time.

Sandwich Shop

A food establishment that specializes in making and selling sandwiches with a variety of fillings and bread types.

Exponential Smoothing

A rule of thumb technique for smoothing time series data using the exponential window function, commonly used for smoothing past data to predict future values.

Time Series

A time series is a sequence of data points collected or recorded over a specified period, showing the values of a variable or several variables over time.