24. Portfolio risk and return (S7.4) Ebenezer Scrooge has invested 60% of his money in share A...

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24. Portfolio risk and return (S7.4) Ebenezer Scrooge has invested 60% of his money in share A and the remainder in share B. He assesses their prospects as follows:

A B Expected return (%) 15 20 Standard deviation (%) 20 22 Correlation between returns 0.5

a. What are the expected return and standard deviation of returns on his portfolio?

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Principles Of Corporate Finance

ISBN: 9781264080946

14th Edition

Authors: Richard Brealey, Stewart Myers, Franklin Allen, Alex Edmans

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