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PLEASE HELP!!! Stock B Er) (%) 0.2 0.15 61%) 0.2 0.5 A 1 Correlation Matrix B -0.5 1 A person can become indebt at the
PLEASE HELP!!!
Stock B Er) (%) 0.2 0.15 61%) 0.2 0.5 A 1 Correlation Matrix B -0.5 1 A person can become indebt at the 5% risk free rate. A portfolio is composed by: Short position of stock A for $2,000 and long positions $3,000 of B. 1 What is the expected return and variance of the portfolic? 2. Now, the investor has $2,000 additionally in cash and will be invested at the risk free rate. What is the expected return and variance of the portfolio? 3. What is the composition of the tangent portfolio and its expected return? 4. The correct interpretation of the Sharpe coefficient is: 5. If one investor wants a return of 35% Which is the composition of complete portfolio? What is the risk aversion coefficient (A) of the investorStep by Step Solution
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