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5. Kagera Company has made a portfolio of these three securities: Cost E(R) (R) Treasury bond $100,000 6% 0 Kasai Corporation $80,000 15% 25% Limpopo
5. Kagera Company has made a portfolio of these three securities: Cost E(R) (R) Treasury bond $100,000 6% 0 Kasai Corporation $80,000 15% 25% Limpopo Company $70,000 16% 30% The correlation coefficient between Kasai and Limpopo is 0.6. If the returns are normally distributed, find the probability that the return of the portfolio is more than 15%. (Answer: 41.05%)
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