= 4/A portfolio gives a 10% return for a standard deviation of 18%. The shares in companies

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= 4/A portfolio gives a 10% return for a standard deviation of 18%. The shares in companies C and D have the following returns and standard deviations:

C D Expected return (%) 10 20 Standard deviation (%) 15 30 The correlation between the return on these two shares is 25%.

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Corporate Finance Theory And Practice

ISBN: 9781118849330

4th Edition

Authors: Pierre Vernimmen, Pascal Quiry, Maurizio Dallocchio, Yann Le Fur, Antonio Salvi

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