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can you please show me how to do 8-9? Thank you Beta Amount Invested $350,000 250,000 400,000 0.2 2.5 3.9 Compute the (a) expected return
can you please show me how to do 8-9? Thank you
Beta Amount Invested $350,000 250,000 400,000 0.2 2.5 3.9 Compute the (a) expected return and (b) standard deviation of the following investments: RST Probability ABC 2.0% 22.0% 12.0 12.0 0.6 0.3 2.0 30.0 (c) Suppose you form a portfolio that con- sists of 60 percent Investment ABC and 40 percent Investment RST. Compute the expect ed return and standard deviation of the portfo- lio. (d) Compare the portfolio's standard devia- tion with the individual investments' standard deviations Of the $60,000 invested in a two-stock portfolio, 40 percent is invested in Stock S and 60 percent is invested in Stock X. If Stock S has a beta coefficient equal to 1.5 and the beta of the portfolio is 2.1, what is the beta coefficient of Stock X? Pete's investment portfolio contains five stocks that nave a total value equal to $40,000. The beta coef- icient o n additional $10,000 in a stock that has beta equal o 2.2. After he adds this stock, what ortfolin's f this portfolio is 1.2. Pete wants to investStep by Step Solution
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