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QUESTION 6 1 points Save Answer a. What is the expected return on a portfolio consisting of an equal amount invested in each stock? Stock

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QUESTION 6 1 points Save Answer a. What is the expected return on a portfolio consisting of an equal amount invested in each stock? Stock Expected Return 15% 10 14 b. What is the expected return on the portfolio if 50 percent of the funds are invested in stock C, 30 percent in stock A, and 20 percent in Stock D? Pathc p Wordso QUESTION 7 1 points Save Answer Given the following information: 12(12%) Expected return on Stock A Standard deviation of retum Expected return on Stock B Standard deviation of retunm Correlation coefficient of the returns .20(20%) 0.6 2 on Stock A and Stock B a. What are the expected returns and standard deviations of the following portfolios? 1. 100 percent of funds invested in Stock A 2. 100 percent of funds invested in Stock B 3. 50 percent of funds invested in each stock? b. What would be the impact if the correlation coefficient were -0.6 instead of 0.2

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