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Frank has a portfolio containing two assets X and Y. Asset X will represent 45% of the rand value of the portfolio, and asset Y
Frank has a portfolio containing two assets X and Y. Asset X will represent 45% of the rand value of the portfolio, and asset Y will account for other 55%. The expected return over the next five years for each of these assets is given below: Calculate the following: 2.2.1 The expected portfolio return, E(Rp) for each of the 5 years. (5) 2.2.2 The expected value of portfolio returns over the 5-year period. (5) 2.2.3 The standard deviation of the expected portfolio returns over the 5 -year period. (10) Frank has a portfolio containing two assets X and Y. Asset X will represent 45% of the rand value of the portfolio, and asset Y will account for other 55%. The expected return over the next five years for each of these assets is given below: Calculate the following: 2.2.1 The expected portfolio return, E(Rp) for each of the 5 years. (5) 2.2.2 The expected value of portfolio returns over the 5-year period. (5) 2.2.3 The standard deviation of the expected portfolio returns over the 5 -year period
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