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a. The following table presents the three-stock portfolio. Stocks Portfolio Coefficient Expected Standard Weight Beta return deviation X 0.25 0.50 0.40 0.07 Y 0.25 0.50

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a. The following table presents the three-stock portfolio. Stocks Portfolio Coefficient Expected Standard Weight Beta return deviation X 0.25 0.50 0.40 0.07 Y 0.25 0.50 0.25 0.05 P 0.50 1.00 0.21 0.07 Variance of the market returns to range from 0.36 to 0.81. a) What is the Beta coefficient of the portfolio? b) What is the expected rate of return on the portfolio? c) What is an actual variance of the portfolio, if the following actual covariance between the stock's returns is given: CoV (TX. TY = 0.020 Cov (IX. rP) = 0.035 Cov (rY. rP) = 0.035 ( 10 marks)

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