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please help with this! Your client has $100,000 invested in stock A. She would like to build a two-stock portfolio by investing another $100,000 in
please help with this!
Your client has $100,000 invested in stock A. She would like to build a two-stock portfolio by investing another $100,000 in either stock B or C. She wants a portfolio with an expected return of at least 14.0% and as low a risk as possible, but the standard deviation must be no more than 40%. What do you advise her to do, and what will be the portfolio expected return and standard deviation? Expected Return 16% 12% 12% Standard Deviation 46% 38% 38% Correlation with A 1.00 0.15 0.25 The expected return of the portfolio with stock B is 96 The expected return of the portfolio with stock C is The standard deviation of the portfolio with stock B is The standard deviation of the portfolio with stock C is (Round to one decimal place.) D. (Round to one decimal place.) LM (Round to one decimal place.) (Round to one decimal place.)Step by Step Solution
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