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Calculations of different portfolio combinations of two securities influence the risk-reward characteristic. Base Portfolios 0.25 0.25 0.25 0.25 -6.0% +12.0% 0.0% +18.0% -12.0% +18.0% +24.0%

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Calculations of different portfolio combinations of two securities influence the risk-reward characteristic. Base Portfolios 0.25 0.25 0.25 0.25 -6.0% +12.0% 0.0% +18.0% -12.0% +18.0% +24.0% +6.0% 1. Calculate E(r), Var(r), and (r) 2. Portfolio K invests WH 1/3 in H and wi 2/3 in I. Calculate 1/3 in I. Calculate E(r), Var(r), and o(r) 3. Portfolio M invests wH 2/3 in H and w E(r), Var(r), and (r) 4. Calculate Cov(rH, r) and pH.I

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