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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.

image text in transcribed
QUESTION 11 Nick considers forming a portfolio (P) that contains a government bond and lem shares. The table below shows the information about the returns and risk of the two assets. Expected Retum E(R) Standard Deviation o Government Bond 1% 0 IBM 5% 0.8% Which choice below shows the risk-return relation of Nick's portfolio? O a E(Rp) - 1% + 50p b. E(Rp) : 19 + 20p OcE(Rp) - 5% + Op Od. E(Rp) = 5% 720p e. None of the above. QUESTION 11 Nick considers forming a portfolio (P) that contains a government bond and lem shares. The table below shows the information about the returns and risk of the two assets. Expected Retum E(R) Standard Deviation o Government Bond 1% 0 IBM 5% 0.8% Which choice below shows the risk-return relation of Nick's portfolio? O a E(Rp) - 1% + 50p b. E(Rp) : 19 + 20p OcE(Rp) - 5% + Op Od. E(Rp) = 5% 720p e. None of the above

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