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1. Here are returns and standard deviations for 4 investments: Standard Deviation (%) Investment Treasury Bills Stock P Stock Q Stock R Return (%) 6
1. Here are returns and standard deviations for 4 investments: Standard Deviation (%) Investment Treasury Bills Stock P Stock Q Stock R Return (%) 6 10 14.5 21 14 28 26 Calculate the standard deviation of a portfolio, 50% Treasury Bills and 50% Stock P Calculate the standard deviation of a portfolio, 50% 50% Q and 50% R, assuming a. b. i. Perfect positive correlation ii. Perfect negative correlation ii. No correlation c. Plot an efficient frontier curve for Q and R, assuming a correlation coefficient of.5 1. Here are returns and standard deviations for 4 investments: Standard Deviation (%) Investment Treasury Bills Stock P Stock Q Stock R Return (%) 6 10 14.5 21 14 28 26 Calculate the standard deviation of a portfolio, 50% Treasury Bills and 50% Stock P Calculate the standard deviation of a portfolio, 50% 50% Q and 50% R, assuming a. b. i. Perfect positive correlation ii. Perfect negative correlation ii. No correlation c. Plot an efficient frontier curve for Q and R, assuming a correlation coefficient of.5
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