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See 2nd image for data table. Plaese assist with A-E. Plesae show answer in % Computing the standard deviation for a portfolio of two risky
See 2nd image for data table. Plaese assist with A-E. Plesae show answer in %
Computing the standard deviation for a portfolio of two risky investments) Mary Guilott recently graduated from Nichols State University and is anxious to begin investing her meager savings as a way of applying what she has earned in business school. Specifically, she is evaluating an investment in a portfolio comprised of two firms common stock. She has collected the following information about the common stock of Firm A and Fim B EE a. If Mary invests half her money in each of the two common stocks, what is the portfolio's expected rate of return and standard deviation in portfolio return? b. Answer part a where the correlation between the two common stock investments is equal to zero c. Answer part a where the correlation between the two common stock investments is equal to 1 d. Answer part a where the correlation between the two common stock investments is equal to -1 e. Using your responses to questions a-d, describe the relationship between the correlation and the risk and return of the portfolio s common stock and the correlation between the stocks is 40 th e expected rate of return in the portfolio s a Mary decides to invest 50% o her money in Firm A's common stock and 50% in Firm decimal places.) o oStep by Step Solution
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