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i have 15 min left please fast You are interested in investing in stocks L and M and based on the copital asset pricing model,

i have 15 min left please fast
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You are interested in investing in stocks L and M and based on the copital asset pricing model, the expected refurn of stock L is 25% and the expected return of M is 30%. The standard deviation of stocks L and M are 0.3 and 0.4 respoctively. Your broker has recocnmended that you create a portlolio consisting of 20% of stock 1 and 80 s of stock M in order to maximize your return and minimipe risk. 1. Calculate the expected return and standard deviation when the corretation coefficient between the stocks is 0.4 ( 4 marks) II. Calculate the standard deviation when the correlation coefficient between the stocks is 0.4 (3 marks) ii. Demonstrate by appropriate calculations whethet or not diversification has been achieved (4 marks) in Based on parts 1 ) and in obove how does the correlation coefficient affect the standard deviation of the portiotio (4 maiks)

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