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ASAP please solve correctly Intormation on stockes 6 & H which have a cotetating coelficient of 0.5 apgear below Your uncle has sevings of $20,000
ASAP please solve correctly
Intormation on stockes 6 \& H which have a cotetating coelficient of 0.5 apgear below Your uncle has sevings of $20,000 and was thinking of liverting 80 of the amount in stock G and the rema inder in stock H. Required: a. Calculate the expected return and standard devlation of your uncles potfollo ( 5 marks) b. Dermonstrate by approprlate calculations whether or not diversictication has been achieved by combining these two stocks in a portiolio (4 marks) c. Your uncle is woaried about taking risks as he is close to retirenent age. Advise him on what actions he could take to estiblish a portlolio that is less risky Provide calculations to show that the proposed portiollo is less risicy Step by Step Solution
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