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Data eburn Camera Wiers Company and remainder in Neste Corporation. The expected return from General Motors Company and Nestle Corporation is 15% and 12% While

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Data eburn Camera Wiers Company and remainder in Neste Corporation. The expected return from General Motors Company and Nestle Corporation is 15% and 12% While the standard deviation from General Motors Company and Nestle Corporation is 9% and 7%, respectively, the expected rotum of a portfolio and portfolio risk i correlation between the two stocks is 0.5 (1+25-35 marks) Domos os hon different sectors in his portfolio, what will happen increase, decrease, remain same) to portfolio risk? Briefly justify your answer. No calculation (0.5+1 -1.5 marks) OR new to the hypothetical company Pharm Care In som 5% Excuum on the Market Portfolio Calculate the required returning Capital Asset Pricing Model (CAPM) equation (3.5 marks) b. Terry, the number of the stocks increases what will be the offect (increaso, decrease, remain same) on systematic risk? Briefly justify your answer. No calculation gant (0.5 1 1.5 marks)

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