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question 7 please (all of it) What is the expected value and variance of the return of investment in both D and F? An investment
question 7 please (all of it)
What is the expected value and variance of the return of investment in both D and F? An investment ABC has the following net return for the two events indicated: Compute the expectation and variance of investment in the net return of ABC. Consider a portfolio consisting of 0.6 of security G and 0.4 of security H that have rates of return that are independent. a. The portfolio has an expected rate of return of _____ percent and a standard deviation of ______ percent. b. If the two securities had rates of return that are perfectly positively correlated, then the expected rate of return on the portfolio _____ is percent. The standard deviation of the portfolio's return is _____. c. If the correlation coefficient of the returns is 0.7 the variance of the portfolio is _____ percentStep by Step Solution
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