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3.2. Suppose you have $100,000 that you want to invest in two companies in the following table. Their correlation coefficient is 45%. Your portfolio should

3.2. Suppose you have $100,000 that you want to invest in two companies in the following table. Their correlation coefficient is 45%. Your portfolio should have a return of 15%.

Security

Price/share

E(R)

(R)

Major Oil Company

$40

12%

35%

Callaghan Aluminum

$100

16%

40%

(A) Approximately how many shares of stock of each company should you buy?

Answer not given.

(B) What is the of the portfolio? 34.83% --- >>> (ONLY SERVES AS A GUIDE)

NOTE: PLEASE HAVE ALL ANSWER IN WORD OR EXCEL FORMAT (EDITABLE FORMAT). NO IMAGE ATTACHMENT, PLEASE!

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