Question
Use the table for the question(s) below. Consider the following expected returns, volatilities, and correlations: StockExpected ReturnStandard DeviationCorrelation with Duke EnergyCorrelation with MicrosoftCorrelation with Wal-Mart
Use the table for the question(s) below.
Consider the following expected returns, volatilities, and correlations:
StockExpected ReturnStandard DeviationCorrelation with Duke EnergyCorrelation with MicrosoftCorrelation with Wal-MartDuke Energy14%6%1.0-1.00.0Microsoft44%24%-1.01.00.7Wal-Mart23%14%0.00.71.0
The volatility of a portfolio that is equally invested in Duke Energy and Microsoft is closest to:
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International financial management
Authors: Jeff Madura
13th edition
978-1337099738, 1337099732, 9781337515894, 1337515892, 978-1337587211
