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QUESTION 7 A portfolio is composed of two stocks, A and B. Stock A has a standard deviation of return of 9%, while stock B
QUESTION 7 "A portfolio is composed of two stocks, A and B. Stock A has a standard deviation of return of 9%, while stock B has a standard deviation of return of 10%. Stock A comprises 45% of the portfolio, while stock B comprises 55% of the portfolio. If the variance of return on the portfolio is 0.008, the correlation coefficient between the returns on A and B is Note: Express your answers in strictly numerical terms. For example, if the answer is 5%, write 0.05" QUESTION 16 "Semitool Corp. has an expected excess return of 17.5% for next year. However, for every unexpected 1% change in the market, Semitool's return responds by a factor of 1.3. Suppose it turns out that the economy and the stock market do better than expected by 15% and Semitool's products experience more rapid growth than anticipated, pushing up the stock price by another 6%. Based on this information, what was Semitool's actual excess return? Note: Express your answers in strictly numerical terms. For example, if the answer is 5%, write 0.05
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