Use the table for the question(s)below.
Consider the following expected returns,volatilities,and correlations:

-The expected return of a portfolio that is equally invested in Wal-Mart and Duke Energy is closest to:

Question

Use the table for the question(s)below.
Consider the following expected returns,volatilities,and correlations:
 
-The expected return of a portfolio that is equally invested in Wal-Mart and Duke Energy is closest to:

Quizplus · Accepted Answer

To find the expected return of a portfolio that is equally invested in Wal-Mart and Duke Energy, we simply take the average of their individual expected returns:
(0.085 + 0.125)/2 = 0.105 or 10.5%
Therefore, the closest answer choice is E) 18.5%, which is not a viable option based on the given data.

Use the Table for the Question(s)below