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HEALTHCARE FINANCIAL MANAGEMENT pts Chapter 5- Financial Risk and Required Return PROBLEM 6 State Probability B D 0.1 30 15% Very poor Refer to Table
HEALTHCARE FINANCIAL MANAGEMENT pts Chapter 5- Financial Risk and Required Return PROBLEM 6 State Probability B D 0.1 30 15% Very poor Refer to Table 4.2 in UHFM or the right cited table. 0.2 200% 100% Poor Construct an equal-weighted (50/50) portfolio of Investments B and D. 0.4 100% 0% (1) What is the expected rate of return and standard deviation of the portfolio? Average 0% 25% 2) Compare your results of portpolio risk(BD) and stand-alone risks (B/D) and explain why. Good Very good 0.1 10% 35% BD
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