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1 1. Anika purchases 100 shares of Tesco at a price of $50 per share and 120 shares of Morrisons at $20 per share. a)

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1. Anika purchases 100 shares of Tesco at a price of $50 per share and 120 shares of Morrisons at $20 per share. a) Calculate the weights of the portfolio that Anika has invested in. b) Suppose, the returns of Tesco and Morrisons are 15% and 17% respectively. Standard deviation of Tesco and Morrisons are 12% and 14% respectively. The two stocks experience correlation of 0.65. How much the portfolio creates expected rate of return and risk

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