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Please answer in excel format. Also please include steps used to formulate the answers. Thank you! 10. Hyacinth Macaw invests 55% of her funds in
Please answer in excel format. Also please include steps used to formulate the answers. Thank you!
10. Hyacinth Macaw invests 55% of her funds in stock I and the rest in stock J. The standard deviation of returns on I is 16%, and on J it is 23%.
a) Calculate the variance of portfolio returns, assuming the correlation between the returns is 1.
b) Calculate the variance of portfolio returns, assuming the correlation is 0.6.
c) Calculate the variance of portfolio returns, assuming the correlation is zero.
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