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3. Asset X Asset Y j Pro Return, la Pry Return, ry 1 0.30 20% 0.20 20% 2 0.30 12% 0.10 5% 3 0.10 -7%
3. Asset X Asset Y j Pro Return, la Pry Return, ry 1 0.30 20% 0.20 20% 2 0.30 12% 0.10 5% 3 0.10 -7% 0.30 0 4 0.15 5% 0.20 10% 5 0.15 15% 0.20 -15% a) Calculate the expected value of return, F, for each of the two assets. Which provides the largest expected return? b) Calculate the standard deviation, Or, for each of the two assets' returns. Which appears to have the greatest risk? c) Calculate the portfolio expected return and risk if you invest 63% of your wealth in X and 37% in Y, of your total wealth of $50,000. The correlation coefficient between the two assets is 0.70
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