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%

Question

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%

Quizplus · Accepted Answer

B) 11ea84dc_f534_04ff_9a63_65930226d866_TB1316_00_TB1316_00 11ea84dc_f534_0500_9a63_a7dfc4bca8e1_TB1316_00_TB1316_00 = 0.0081
stdev = 11ea84dc_f534_2c11_9a63_391d371c779f_TB1316_11_TB1316_11 = 0.09

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