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4 of 6 (4 complete) ry Guilott recently graduated from Nichols State University and is anxious to begin investing mmon stock. She has collected the
4 of 6 (4 complete) ry Guilott recently graduated from Nichols State University and is anxious to begin investing mmon stock. She has collected the following information about the common stock of Firm A Efolio's expected rate of return and standard deviation in portfolio return? is equal to zero is equal to +1 is equal to - 1 Data Table - Expected Return 0.15 0.16 0.50 Standard Deviation 0.17 0.26 Firm A's common stock Firm B's common stock Correlation coefficient Print Done Clear All 121231197_10334....png A 121259221_31085....png 121234033_3510 BA 90 P8-3 (similar to) Question Help (Computing the standard deviation for a portfolio of two risky investments) Mary Guilont recently graduated from Nichols State University and is arious to begin investing her meager savings as a way of applying what she has learned in business School Specifically, she is evaluating an investment in a portfolio comprised of two firms common stock. She has collected the following information about the common stock of FirmA and Firm Bm af Mary invests half her money in each of the two common stocks, what is the portfolio's expected rate of return and standard deviation in portfolio return? 1. Answer part a where the correlation between the two common stock investments is equal to zero C. Answer part a where the correlation between the two common stock investments is equal to 1. d. Answer part a where the correlation between the two common stock investments is equal to - 1 e. Using your responses to questions d describe the relationship between the correlation and the risk and return of the portfolio . Il Mary decides to invest 50% of her money in Fim A's common stock and 50% in Firm B's common stock and the correlation between the two stocks is 0.50, then the expected rate of retum in the portfolio is I (Round to two decimal places.) Enter your answer in the answer box and then click Check Answer, 8 remaining Clear All Check Answer IMPALA AIRBAG A..pdf Show all 1 Type here to search o i B 722 PM 10/1/20020 18
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