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Consider the following joint PDF: Calculate the expected return of IBM and the market. Calculate the variance of IBM and the market. Calculate the covariance
Consider the following joint PDF:
- Calculate the expected return of IBM and the market.
- Calculate the variance of IBM and the market.
- Calculate the covariance and correlations of IBM and the market without using the excel function. (You may use the function to confirm your answer is correct).
- Compute the expected return and standard deviation of a portfolio that invests X% in IBM and (1-X%) in the market for values of 10% to 100% in increments of 10%.
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