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B. Mr. Rain would like to invest in consumer portfolio representing proportion investment of 70% and 30% in asset A and asset B respectively. Data
B. Mr. Rain would like to invest in consumer portfolio representing proportion investment of 70% and 30% in asset A and asset B respectively. Data for the two stocks is provided as below: Probability States of the Economy Good Poor Return of Asset A 10% 5% Return of Asset B 10% 20% 0.5 0.5 Required: i. Calculate the expected portfolio return. (5 marks) ii. Calculate the standard deviation portfolio risk
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