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Find expected return, variance and standard variance for Stock B,C Your client has $104,000 invested in stock A. She would like to build a two-stock
Find expected return, variance and standard variance for Stock B,C
Your client has $104,000 invested in stock A. She would like to build a two-stock portfolio by investing another $104,000 in either stock B or C. She wants a portfolio with an expected return of at least 14.5% and as low a risk as possible, but the standard deviation must be no more than 40%. What do you advise her to do, and what will be the portfolio expected return and standard deviation? The expected return of the portfolio with stock B is %. (Round to one decimal place.)Step by Step Solution
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