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computing the portfolio expected rate of return. (Related to Checkpoint 8.1) (Computing the portfolio expected rate of return) Penry Francis inherited a $200,000 portfolio of
computing the portfolio expected rate of return.
(Related to Checkpoint 8.1) (Computing the portfolio expected rate of return) Penry Francis inherited a $200,000 portfolio of investrments from her grandparents when she fumed 21 years of age. The portfolio is comprised of Treasury bills and stock in Fond (F) and Harley Davidson (HOG): a. Based on the current portfolio composilion and the expected rates of tebum, whet is the expected rate of return for Penny/s portfolio? b. If Ponny wants to increase her expected portilolio rate of return. she can inctease the allocated weight of the portfolio she has invested in stock (Ford and Harloy Davidton) and decrease her holdings of Treasury bills. If Penny moves all her money out of Treasury bills and splits it evenly between the two stocks, what will be her expected rate of return? c. If Penny does move money out of Treasury bills and into the two stocks, she will reap a higher expected portlolio return, so why would anyone want to hold Treasury bills in their porffolio? 2. Eased on the current portfolo composition and the given expected rates of return, the expected rate of retum for Penry's portfolio is \%. (Round to two decimal placos) Data table Step by Step Solution
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