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Please solve. Your client has $96.000 invested in stock A. She would like to build a two-stock portfolio by investing another $96,000 in either stock
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Your client has $96.000 invested in stock A. She would like to build a two-stock portfolio by investing another $96,000 in either stock B or C. She wants a portfolio with an expected return of at least 15.0% 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 17% 13% 13% Standard Deviation 50% 39% 39% Correlation with A 1.00 0.16 0.29 The expected return of the portfolio with stock Bis 15.0 %. (Round to one decimal place.) The expected return of the portfolio with stock C is 15.0 %. (Round to one decimal place.) The standard deviation of the portfolio with stock B is % (Round to one decimal place.)Step by Step Solution
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