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Consider the possible rates of return that Mr. Bernabe might earn next year on a $50.000 investment in Aboltiz Energy or on a $50.000 investment

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Consider the possible rates of return that Mr. Bernabe might earn next year on a $50.000 investment in Aboltiz Energy or on a $50.000 investment in ACEN. The securities of Aboitiz and ACEN have the expected return and standard deviation given below; the expected correlation between the stocis is 0.1 . Compute the return and risk of the portfolio 50% Aboitiz and S0\% ACEN E/R=12.5%;SD=18.30% E/R=11.5%;SD=22.41% E/R=10.5%;SD=18.84% E/R=11.5%:SD=18.84%

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