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PLEASE ANSWER I WILL THUMBS UP!! You want to invest $43,000 in a portfolio with a beta of no more than 1.4 and an expected
PLEASE ANSWER I WILL THUMBS UP!!
You want to invest $43,000 in a portfolio with a beta of no more than 1.4 and an expected return of 15.6%. Bay Corp. has a beta of 0.9 and an expected return of 11.1%, and City Inc. has a beta of 18 and an expected return of 19.2%. The risk-free rate is 3%. Is it possible to create this portfolio investing in Bay Corp, and City Inc.? If so, how much will you invest in each? Select the correct choice and, if necessary, fill in the answer boxes to complete your choice. A. It is possible to create the portfolio by investing in Bay Corp. and San City Inc. (Round to the nearest cent) B. It is not possible to create the portfolio in our client has $97,000 invested in stock A. She would like to build a two-stock portfolio by investing another $97,000 in either stock B or C. She wants Dortfolio with an expected return of at least 15.0% and as low a risk as possible, but the standard deviation must be no more than 40%. What do you advise her to do, and what will be the portfolio expected return and standard deviation? Expected Return Standard Deviation Correlation with a 17% 49% 1.00 13% 39% 0.14 13% 39% 0.25 The expected return of the portfolio with stock Bis 0% (Round to one decimal place.) Step by Step Solution
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