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Show calculations step by step Kevin has $10,000 to invest. He is considering investing in two companies: Fisher & Paykel and Star Bank. Based on
Show calculations step by step
Kevin has $10,000 to invest. He is considering investing in two companies: "Fisher & Paykel" and "Star Bank. Based on past research Kevin knows that the returns of these companies are uncorrelated. The current market price of each share and Kevin's assessment of the expected return and risk for each share are provided below: Share Price Fisher & Paykel $60.00 Star Bank $20.00 Expected return Std. Dev. 14% 7% 4% 2% (i) Kevin decides to purchase 100 shares of Fisher & Paykel and 200 shares of Star Bank. Can Kevin construct this portfolio with the amount of money he has to invest? What is the expected return on this portfolioStep by Step Solution
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