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Probability A B 0.53 13% 22% 0.47 28% 10% We will invest 40% of your initial investment in Stock A, 60% in Stock B. 1
Probability A B 0.53 13% 22% 0.47 28% 10% We will invest 40% of your initial investment in Stock A, 60% in Stock B. 1 What is the expected return of the 2-security portfolio? What is the co-variance between Stock A and Stock B? What is the correlation coefficient between Stock A and Stock B? What is the variance of the 2-security portfolio? What is the coefficient variation of the 2-security portfolio
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