Use the table for the question(s) below. Consider the following expected returns, volatilities, and correlations:...
90.2K
Verified Solution
Link Copied!
Question
Accounting
Use the table for the question(s) below. Consider the following expected returns, volatilities, and correlations:
| Stock | Expected Return | Standard Deviation | Correlation with Duke Energy | Correlation with Microsoft | Correlation with Wal-Mart |
| Duke Energy | 14% | 6% | 1.0 | -1.0 | 0.0 |
| Microsoft | 44% | 24% | -1.0 | 1.0 | 0.7 |
| Wal-Mart | 23% | 14% | 0.0 | 0.7 | 1.0 |
The expected return of a portfolio that is equally invested in Duke Energy and Microsoft is closest to:
| a. | 24% | |
| b. | 28% | |
| c. | 29% | |
| d. | 23% |
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
- Unlimited Question Access with detailed Answers
- Zin AI - 3 Million Words
- 10 Dall-E 3 Images
- 20 Plot Generations
- Conversation with Dialogue Memory
- No Ads, Ever!
- Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Other questions asked by students
StudyZin's Question Purchase
1 Answer
$0.99
(Save $1 )
One time Pay
- No Ads
- Answer to 1 Question
- Get free Zin AI - 50 Thousand Words per Month
Best
Unlimited
$4.99*
(Save $5 )
Billed Monthly
- No Ads
- Answers to Unlimited Questions
- Get free Zin AI - 3 Million Words per Month
*First month only
Free
$0
- Get this answer for free!
- Sign up now to unlock the answer instantly
You can see the logs in the Dashboard.