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please full procedure 4. You are interested in creating a portfolio of two stocks: Coca-Loc and Texts DisUtilis. You have the following that could be
please full procedure
4. You are interested in creating a portfolio of two stocks: Coca-Loc and Texts DisUtilis. You have the following that could be relevant for solving the problem: Coca- Texts loc DisUtilis Mean-Return 15.0% 12.5% Medium-Return 21.0% 38.0% Mode Return 23.0% 20.0% Correlation-Coca-Loc and Text -25.0% -25.0% DisUtilis Covariance Coca_Loc and Text Disutilis 85.4% 85.4% Corelation Coca-Loc and the Market 25.0% 25.0% a. If you include Coca-loc and Text DisUtilis in the same portfolio you increase of decrease diversification, why? b. What is the expected return with 50% of your wealth invested in Coca-loc and the rest in Texts DisUtilis. c. Do you think that the correlation between international stocks and US stocks have been growing or not? WhyStep by Step Solution
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