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please explain how you got answers Az OX 7. Portfolio expected return and risk A collection of financial assets and securities is referred to as
please explain how you got answers
Az OX 7. Portfolio expected return and risk A collection of financial assets and securities is referred to as a portfolio. Most individuals and institutions invest in a portfolio, making portfolio analysis an integral part of the field of finance. Just like stand-alone assets and securities, portfolios are also exposed to risk Portfolio iskrefers to the possibility that an investment portfolio will not generate the investor's expected rate of return Analyzing portfolio risk and return involves the understanding of expected returns from a portfolio Consider the following case: Andre is an amateur investor who holds a small portfolio consisting of only four stocks. The stock holdings in his portfolio are shown in the followire a tablet Stock Artemis Inc. Babish & Co Comell Industries Danforth Motors Percentage of Portfolio Expected Return Standard deviation 6.00 31.00 30 14.00 35.00 354 11.00% 38.00% 3.005 40.00% int What is the expected return on Andre's stock portfolio 7.28 Danforth Motors 15% 11.00% 3.00% 38.00% 40.00% What is the expected return on Andre's stock portfolio? 7.28% O 9.70% 28 ent O 14.55% 13.10% more than equal to Suppose each stock in Andre's portfol less than of the individual securities (as measu standard deviation () most likely is Jation coefficient of 0.4 (p = 0.4) with each of the other stocks. If the weighted average of the risk Jandard deviations) included in the partially diversified four-stock portfolio 36%, the portfolio 36% Save & Continue Continue without ang Step by Step Solution
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