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QUESTION ONE A Kenyan investor is considering investing his funds in three different risky assets at the NSE (Kenya): A. B and C which are
QUESTION ONE A Kenyan investor is considering investing his funds in three different risky assets at the NSE (Kenya): A. B and C which are expected to generate returns and risks as follows: Asset Expected return Expected risk A 19% 10% B 23% 14% Correlation coefficient (IAB) -0.30 If the weights of the investments in the two securities are Wa is 40%; WB is 60% Required: a) Calculate the expected portfolio return b) Calculate the portfolio risk
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