Consider the Following Expected Returns, Volatilities, and Correlations

question 22

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:

Earlier Stage

A phase or period that takes place at the beginning of a process or sequence.

Development

Development refers to the process of change and growth that occurs in living organisms, including physical, cognitive, and social-emotional progress over time.

Regression

A return to an earlier or less developed state, often in psychology referring to the adoption of behaviors not typical of the current developmental stage.

Memory

The cognitive function that allows information to be stored, retained, and recalled from the past.