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7 Risk Return_S1_2023_Bb (3) ) Animations Slide Show Record Review View Help ontain viruses. Unless you need to edit, it's safer to stay in Protected

7 Risk Return_S1_2023_Bb (3) ) Animations Slide Show Record Review View Help ontain viruses. Unless you need to edit, it's safer to stay in Protected View. X Q Search $ 4 F4 C R The Expected Return and Risk of a Portfolio F Protected View Saved to this PC The expected return of a portfolio The weighted average of the expected returns of the investments within it, using the portfolio weights: E[Rp]=wE[R]+wE[R]+...+wE[R] Problem: Suppose you invest $10,000 in Boeing (B A) stock, and $30,000 in Merck (MRK) stock. You expect a return of 10% for Boeing and 16% for Merck. What is the expected return for your portfolio? F5 % 45 n F6 DLOE G CO 6 + F7 & 18 7 F8 T Y U E E V B N Enable Editing * CO 8 8 MOGLOe F9 09 P 9 F10 - 0 Harminder Kaur HK DI F11 00 + - Record F12 C 0 HO 9 ENG US PrtSc Pr + 11 1 O ItRannual =( 2) Realized return (Ret) = DiVE-1 th+1 PE H J 1) annual realized return = Re Average annual return = " The Variance and volatility" 5 SD = SD(R) Jar Q Pantelic weights: w
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The Expected Return and Risk of a Portfolio The expected return of a porttolis - The weighted average of the expected returns of the irvestments within it, using the portiolio weights E[RB]=w1E[R1]+w2E[R2]++wnE[RA] Problem: Suppose you invest $10,000 in Boeing (BA) sock, and $30,000 in Merek (M R K) stock. You expect a returt of toks for Boeing and 16% for Merck. What is the expecled rotum sar your portfolia

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