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Question 3: You realize that having all your Dogs in one basket is a bit risky, and your roommate owns a latenight munchie/Breakfast Restaurant named
Question 3: You realize that having all your Dogs in one basket is a bit risky, and your roommate owns a latenight munchie/Breakfast Restaurant named Eggsactly Rite (The ER on Green) in which she offers you a chance to invest. The particulars are provided below. (note - this is covered in week 2 Portfolio Primer section) Projections D&D 5% 4% E(r) o(r) ER on Green 10% 22% Correlation in returns 0 Part a: If you reallocated your investments so that you owned 90% of DD and 10% of ER on Green calculate your new: Portfolio E(rp) Sig(rp) and the weighted average of the original Standard Deviations (Think 'Bout why this is incorrect as a measure of risk) Homework 1
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