Question
a. Construct an equal-weighted (50/50) portfolio of investments B and C. What are the expected rate of return and standard deviation of the portfolio?
a. Construct an equal-weighted (50/50) portfolio of investments B and C. What are the expected rate of return and standard deviation of the portfolio? Explain your results.(6 Points) b. Construct an equal-weighted (50/50) portfolio of investments B and D. What are the expected rate of return and standard deviation of the portfolio? Explain your results. (6 Points) Year Very Poor Poor Average Good Very Good Probability 0.10 0.20 0.40 0.20 0.10 A -10% 0 10 20 30 B 30% 20 10 0 -10 C -25% 15 35 55 D 15% 10 0 25 35 AB 10% 10 10 10 10. AC AD -17.50% 2.5% -2.5 12.5 27.5 42.5 5.0 5.0 22.5 32.5
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Essentials Of Statistics For Business & Economics
Authors: David R. Anderson, Dennis J. Sweeney, Thomas A. Williams, Jeffrey D. Camm, James J. Cochran
9th Edition
0357045432, 978-0357045435
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