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Question 6 (1 point) An investor has total wealth of $100,000 and invests in a portfolio with 2 securities A and B. Expected returns and
Question 6 (1 point)
An investor has total wealth of $100,000 and invests in a portfolio with 2 securities A and B. Expected returns and variances of the two securities are as below:
Security | Exptected return E(R) | Standard deviation s |
A | 10% | 15% |
B | 7% | 10% |
Cov (A,B) |
| 0.004 |
If he invests $30,000 in security A and $70,000 in security B, what are the expected return and volatility of this portfolios return?
Question 6 options:
| E(RP) = 7.9% and sP = 10.35% |
| E(RP) = 7.9% and sP = 6.57% |
| E(RP) = 7.5% and sP = 10.64% |
| None of these |
this is all thats given from the question
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