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:

Demandingness

The degree to which parents or guardians expect and require responsible, mature behavior from their children.

Moderately Achievement Oriented

Refers to an individual's tendency to aspire for success and accomplishment in tasks with a balanced level of ambition and realism.

Illicit Behavior

Acts that are forbidden by law, rules, or custom.

Drug Use

The consumption of substances for their psychoactive effects, which can range from prescribed medications to illegal narcotics.