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Imagine that a particular investor would like to invest in the two assets presented in the table below but since she is a rational investor,

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Imagine that a particular investor would like to invest in the two assets presented in the table below but since she is a rational investor, she wishes to run some analysis to see if the portfolio return and risk are matching with her investment standards and expectations. The financial information about the portfolio is as follows: Expected Rate of Return () Standard Deviation Weight (w) Investment Asset C 11.00% 5.00 75.00% Asset D -5.00% 8.00 25.00% Total 100% Assume that the correlation coefficient (p) of these two securities +0.50. For a portfolio consisting of 75.00% of the funds invested in asset C and the reminder in asset D, determine and risk (op) and the portfolio return (rap) 5.06% portfolio risk (rounded) and 7.00% portfolio return 5.90% portfolio risk (rounded) and 6.12% portfolio return Return ). (). Asset C 11.00% 5.00 75.00% Asset D -5.00% 8.00 25.00% Total 100% Assume that the correlation coefficient (p) of these two securities +0.50. For a portfolio consisting of 75.00% of the funds invested in asset C and the reminder in asset D, determine and risk (op) and the portfolio return ( ro) 5.06% portfolio risk (rounded) and 7.00% portfolio return 5.90% portfolio risk (rounded) and 6.12% portfolio return 5.06% portfolio risk (rounded) and 7.50% portfolio return 4.65% portfolio risk (rounded) and 5.15% portfolio return

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