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please help by writing on A4 paper, by clearly writing the formulas and operations. 3) An investor has 800000TL to invest. He invests 600000TL in
please help by writing on A4 paper, by clearly writing the formulas and operations.
3) An investor has 800000TL to invest. He invests 600000TL in stock A which has variance of %12,5 and expected return of 0,25 . He considers to invest the rest in Stock B. Stock B has variance of %25 and expected return 0,6 . The correlation coefficient between A and B is 0,45 . a) Calculate the expected return and standard deviation of a portfolio that includes A and B stocks. b) Is there a way to reduce systematic risk of this portfolio? If, explain brieflyStep by Step Solution
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