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Data table (Related to Checkpoint 8.1 ) (Computing the portfolio expected rate of return) Penny Francis inherted a $200,000 portfolio of investments from her gandparents

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Data table (Related to Checkpoint 8.1 ) (Computing the portfolio expected rate of return) Penny Francis inherted a $200,000 portfolio of investments from her gandparents uhen she turned 21 years of age. The pottolio is comprised of Tressury bils and stock in Ford (F) and Harley Davidson (HOG): a. Based on the curreat portfolio composition and the expected rales of retum, what is the expected rate of retum for Pennys portfolio? holdings of Treasury bils. If Penny moves al her money out of Treasury bils and splits if eveniy between the two slocks, what will be her erpected rate of refum? c. If Penny does move money out of Treasury bills and into the two stocks, she will reap a higher expected portfolio return, wo why would anyone want to hold Treasury bils in their portiolio? Based on the current portiolio composition and the given expected rates of retum, the expected rate of retum for Penny's portfolio is \%. (Round to two decimal places.) b. If Penny moves al her money out of Treasury bills and splits it evenly between the two stocks, her expected rate of retum for her portfolio is K. (Round to two decimal placess) c. If Penny does move money out of Treasury bils and into the two stocks, she wil reap a higher expected portfolio refurn, so why would anyone want to hold Treasury bills in their porffelio? isoliec the bost choice below) Athough Treasury bills have a lower expected rate of retum then stocks, they are risk-free compared to other securities. Therefore, many people include Treasury bills in their portolios to lower the risk of their porttolios. 8. Although Treasury bills have a lower expected rate of retum than stocks, they ace risk-free compared to other securities, Therefore, many people include Treasury bills in their portfolos to increase the risk of their portiolios. There is no reason for anyone to ever hold Treasury bills in their portfolios. Authough the Treasury bills in this problem have a lower expected rate of retum than Ford and Harley Davidson stock, this is not always true, Ottan times Treasury bils have retums much higher than stock and then they should be included in a portstio

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