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please show work and answer in a clear and easy way to understand A You have a $40,000 to invest in a portfolio. You want
please show work and answer in a clear and easy way to understand
A You have a $40,000 to invest in a portfolio. You want to put $26,000 investment into Pointer (Pi) and an $14000 investment into Nebulus (N). State of the Economy Probability Wi Boom Normal Recession Depression 0.25 0.40 0.20 0.15 E(Rp) E(RN) % 6.00 14.00 10.00 9.00 13.00 0.00 14.00 -5.00 a. Calculate the portfolio expected return, E(R) b. Calculate the portfolio standard deviation, Op. c. Calculate the correlation coefficient. How does the correlation coefficient explain the results? d. Assume the correlations of - 5.0, 5 and 1. Recalculate the portfolio risk measures with these correlations. Explain how your results change Step by Step Solution
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