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8301169 5, (10%) Suppose that the two stocks, BAC and APPL, have expected returns equal to 5% and 10%. respectively. Suppose that the standard deviations
8301169 5, (10%) Suppose that the two stocks, BAC and APPL, have expected returns equal to 5% and 10%. respectively. Suppose that the standard deviations of the returns are10% and 20% and that the returns on the two stocks have a correlation of 0.5. (a) What portfolio of BAC and APPL achieves an 8% rate of expected return? (b) What is the expected return and risk (STD) of the MVP? (c) What portfolios of BAC and APPL achieve a 15% standard deviation (risk) of return? Among these, which has the highest expected return
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