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b) Save First Investment Fund Ltd plans to create a portfolio comprising company X and Y shares. The following information relates to these shares. X
b) Save First Investment Fund Ltd plans to create a portfolio comprising company X and Y shares. The following information relates to these shares. X Y Expected return 10% 15% Standard Deviation of return 20% 40% Correlation of coefficient 0.5 Required: i. Calculate the expected return of the portfolio by combining 75% of the shares from Company X with the remaining shares from Company Y
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