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Can you please help me to solve those question. It is related to the concept of risk and return of a portfolio. .III Optus AU

Can you please help me to solve those question. It is related to the concept of risk and return of a portfolio.

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.III Optus AU '5" 2:31 pm (5} '7 >3 66% 1:]: E mood|eprod.murdoch.edu.au Part two requires calculations to answer the questions. Furthermore, it requires qualitative explanations that convey your understanding of the concepts of risk and return of a portfolio. You are required to answer the following questions while providing deeper insights about the concepts of risk and return than those that are provided in the article. The table below gives information on three risk}r assets: A, B, and C. Standard Deviation of the Correlations There is also a risk-free asset F whose expected return is 9.9 percent. (i) Calculate the expected return and the standard deviation of Portfolio 1, which consists of 30 percent of Asset A and 70 percent of Asset E. (ii) Calculate the expected return and the standard deviation of Portfolio 2, which consists of 50 percent of Asset A, 32.5 percent of Asset B, and 17.5 percent ofAsset C. (iii) Calculate the expected retum and the standard deviation of Portfolio 3, which consists of 5 percent of Asset A, 75 percent of Asset B, and 20 percent of the Free. Asset F. ' (iv) Calculate the expected return and the standard deviation of Portfolio 4, which is equally weighted of the three risky assets A, B, and C. (v) Calculate the expected return and the standard deviation of Portfolio 5, which is equally weighted of the four assets (i.e. A, B, C, and F). (vi) Explain the differences in the risks and the returns between Portfolio 3, 4 and 5. Include the impact of the risk-free asset in your explanation. End of Questions 3of4

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