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Related to Checkpoint 2.1) (Computing the portfolio expected to freturn) Penny Frands ishochod 5200.000 portfolio of vestments from het and when the sumed 2 years

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Related to Checkpoint 2.1) (Computing the portfolio expected to freturn) Penny Frands ishochod 5200.000 portfolio of vestments from het and when the sumed 2 years of age. The portfolio is comprand of Treaty bills and stock in Ford (F) and Harley Davidson 010) a. Based on the content portfolio composition and the expected rates of room what is the expected rate of return for Penny's portfolio b. Pentry wants to increase her expeded portfolio rate of rebum. she can increase the located weight of the portfolio she has invested in stockford and Hey Davidson and decrease her holdings of Treasurbil i Penny moves al hot money out of Treasury Bills and spit evenly between the top stock what will be herected rate of what? c. Penny dom move money out of Treasury bills and into the two stocks she wil rap high pred portions why would anyone want to hold win the portion? a. Based on the current portfolio comportion and the given expected rates of rom the expected rate of stumdom's portfolio 3 Rund to two decimal places b. Perny moves all her money out of Treasury bills and uplo evenly between the two stocks he expected rate of the portfolio Reun to turdech) c. Penny does move money out of Treasury bills and into the two stock we will reapa hipoche portalom, so why we want to hold try in the portiere best choice below) A. Although the Treasury bills in this problem have a lower expected rate of rolum than Ford and Harley Davidson Wack, the news of times Treasurys have much higher than stock and then they should be included in a portfolio O Amough Troy bilis have a lower expected foto of whom the stocks, they were record to the Therefore many people indude Treasure the post the theo OC There is no reason for one to ever hold Treatybils in their portfotos OD. Although Treasury bits have a lower expected rate from than stocks, they are compared to others. Therefore many people includere le presto increase of the portfolios Next INIM 1 The Most AB of return) Penny Francis inherited a $200,000 portfolio of investments from her ratus what is the ansacted cats of catus for Deco Dada Data table Expected $ Value Return Treasury bills 4.3% 89,000 Ford (F) 7.5% 67,000 Harley Davidson (HOG) 13.2% 44,000 (Click on the icon in order to copy its contents into a spreadsheet.) Print Done a W

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