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Kiwi traders have invested in two securities traded at the Nairobi Stock Exchange (NSE). Supposing A and Bs possible returns are as follows: X=18%, 16%,

  1. Kiwi traders have invested in two securities traded at the Nairobi Stock Exchange (NSE). Supposing A and Bs possible returns are as follows:

X=18%, 16%, 14%, 12%, 10%, 8%, 7%, 5%, 3% and 0% for periods one to ten.

Y=6%,7%,8%,9%,11%,13%,15%,17, %19%,19.5%, for periods one to ten, and each possible return has an equal chance in both cases. Other details remain the same.

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If Kiwi traders portfolio formation is Ksh 300,000, committing equal amounts in each asset, determine the Portfolio risk? (show working)

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