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Compute the annual return of each stock. Compute the covariance and correlation coefficient between the returns of Kellogg and IBM. Create a new portfolio with
Compute the annual return of each stock. Compute the covariance and correlation coefficient between the returns of Kellogg and IBM. Create a new portfolio with 70\% IBM and 30\% Kellogg. What is the expected return and risk? Discuss the advantages or disadvantages of this new portfolio over the individual stocks Step by Step Solution
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Investments
Authors: Zvi Bodie, Alex Kane, Alan J. Marcus
8th Edition
0077261453, 978-0077261450
