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Astrid has the following two investments in her portfolio: Investment Expected Return Standard Deviation Beta % Weighting M 12% 3.1% 1.40 55% N 19% 3.9
Astrid has the following two investments in her portfolio:
Investment | Expected Return | Standard Deviation | Beta | % Weighting |
M | 12% | 3.1% | 1.40 | 55% |
N | 19% | 3.9 | 0.85 | 45 |
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Which investment is riskier by itself and in a portfolio sense?
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What is the expected return of the portfolio?
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With a correlation coefficient of +0.30, what is the standard deviation of the portfolio?
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What is the beta of the portfolio?
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What is the significance of the results in parts a through d?
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