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Assume you wish to evaluate the risk and return behavions Associated with various combinations of two stocks, Alpha Software and Beta Electronics, under the possible

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Assume you wish to evaluate the risk and return behavions Associated with various combinations of two stocks, Alpha Software and Beta Electronics, under the possible degrees of comtation perfect positive correlated and perfect negative. The average retom and standard deviation for each stock appears here: the return of assets Alpha and Beta are perfectly postively correlated correlation coefficient. 1), over what range would the average ratum on portfolios of these locks vary in other words, what is the highest and lowest average retum hat different combinations of these stocks could have? What is the minimum and maximum standard deviation that portfolios Alpha and Beta could achieve? 1. the retums of assets Alpha and Beta are un correlated comation coeficient over what range would the average retum on portfolio of these stocks vary? What is the standard deviation of a portfolio that invests 79% in Ame and 25% in Beta? How does this compare to the standard deviations of Alpha and let alone? c. If thereums of assets Alpha and Betare perfectly negatively corelated correlation coefficient - 1) over what range would the average reum en portfolios of these stocks vary? Call the standard deviation of a porta invest 62.5% in Alpha and 37 5 in Beta If the return of assets Alpha and Bets are perfectly positively correlated correlation coefficient. the range is between 66 and 118% (Round to be decimal place) The range of the standard deviation is between 20.4% and 484 (Round to ore decimal place) b. If the return of assets Alpha and Beta are un corelated correlation coefficient, the range is between and sound to one decimal poo) 49.4 % (Roun (correlation coeff (Click on the icon here in order to copy its contents of the data table below into a spreadsheet.) Asset Alpha Beta Average Return, 6.6% 11.8% Risk (Standard Deviation), s 29.4% 49.4% Print Done Assume you wish to evaluate the risk and return behavions Associated with various combinations of two stocks, Alpha Software and Beta Electronics, under the possible degrees of comtation perfect positive correlated and perfect negative. The average retom and standard deviation for each stock appears here: the return of assets Alpha and Beta are perfectly postively correlated correlation coefficient. 1), over what range would the average ratum on portfolios of these locks vary in other words, what is the highest and lowest average retum hat different combinations of these stocks could have? What is the minimum and maximum standard deviation that portfolios Alpha and Beta could achieve? 1. the retums of assets Alpha and Beta are un correlated comation coeficient over what range would the average retum on portfolio of these stocks vary? What is the standard deviation of a portfolio that invests 79% in Ame and 25% in Beta? How does this compare to the standard deviations of Alpha and let alone? c. If thereums of assets Alpha and Betare perfectly negatively corelated correlation coefficient - 1) over what range would the average reum en portfolios of these stocks vary? Call the standard deviation of a porta invest 62.5% in Alpha and 37 5 in Beta If the return of assets Alpha and Bets are perfectly positively correlated correlation coefficient. the range is between 66 and 118% (Round to be decimal place) The range of the standard deviation is between 20.4% and 484 (Round to ore decimal place) b. If the return of assets Alpha and Beta are un corelated correlation coefficient, the range is between and sound to one decimal poo) 49.4 % (Roun (correlation coeff (Click on the icon here in order to copy its contents of the data table below into a spreadsheet.) Asset Alpha Beta Average Return, 6.6% 11.8% Risk (Standard Deviation), s 29.4% 49.4% Print Done

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