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Four assets have the following distribution of returns. Probability Occurrence Rate of return (%) A B D 0.1 10.0% 6.0% 14.0% 2.0% 0.2 10.0
Four assets have the following distribution of returns. Probability Occurrence Rate of return (%) A B D 0.1 10.0% 6.0% 14.0% 2.0% 0.2 10.0 8.0 12.0 6.0 0.4 10.0 10.0 10.0 9.0 0.2 10.0 12.0 8.0 15.0 0.1 10.0 14.0 6.0 20.0 REQUIRED: a. Compute the expected return and standard deviation of each asset. Compute the covariance of asset b. i ii. A and B c. B and C B and D Compute the correlation coefficient of the combination of assets in b above. 51
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