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25 14% Mary invests $9,600 of her $12,000 available assets into the Metro Doughnut Company with the remainder in the Safe Bond Fund. The Metro

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25 14% Mary invests $9,600 of her $12,000 available assets into the Metro Doughnut Company with the remainder in the Safe Bond Fund. The Metro Doughnut Company and the Safe Bond Fund are positively correlated. Changes in the Safe Bond Fund explain 4% of the returns for the Metro Doughnut Company. If the Metro Doughnut Company has a standard deviation of 20% and the Safe Bond Fund has a standard deviation of 596, what is the standard deviation of the combined portfolio? a. 17.29%. b. 17.00%. c. 16.87% d. 16.23% 7. The is a graphical representation of expected return and risk, as measured by standard deviation. a. APT b. CML c. SML d. Efficient frontier. 8. UThile atandard deviation and beta are both measures of risk, there are differences be

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