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(b) Arina plans to form an investment portfolio that comprised of 50 percent investment in Share X, 25 percent investment in Share Y and 25
(b) Arina plans to form an investment portfolio that comprised of 50 percent investment in Share X, 25 percent investment in Share Y and 25 percent in Share Z The following are the estimated returns for all the three types of financial assets: Year Probability (P) Expected Return (%) of Financial Assets Strong Weak 0.48 0.52 10 10 Y 15 6 z 20 1 Calculate: i. Expected return for each share. (9 marks) ii. Expected return for investment portfolio of share X, Y and Z. (4 marks) iii. Standard deviation for the investment portfolio. (10 marks)
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