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Nick considers forming a portfolio (P) that contains a government bond and IBM shares. The table below shows the information about the returns and risk
Nick considers forming a portfolio (P) that contains a government bond and IBM shares. The table below shows the information about the returns and risk of the two assets.
Which choice below shows the risk-return relation of Nicks portfolio?
a. | E(Rp) = 1% + 5p. | |
b. | E(Rp) = 1% + 2p. | |
c. | E(Rp) = 5% + p. | |
d. | E(Rp) = 5% + 2p. | |
e. | None of the above. |
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