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Asset 1 has an annual return of 7 percent and annualized risk of 12 percent, whereas Asset 2 has an annual return of 15 percent
- Asset 1 has an annual return of 7 percent and annualized risk of 12 percent, whereas Asset 2 has an annual return of 15 percent and annualized risk of 25 percent. You have 40 percent of your money in the first asset, 60 percent in the second asset to form a two-asset portfolio. If the correlation between the two assets return is 0.5. What is the portfolio return and standard deviation? (Show your work)
- An analyst gathers the following information for an equal-weighted index comprised of assets A, B, and C:
Security | BOP Price | Shares | EOP Price | Dividends |
A | 10 | 30 | 12 | 1 |
B | 20 | 30 | 19 | 1 |
C | 30 | 40 | 30 | 2 |
What is the total return of the index? (Show your work)
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