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Show How to calculate on BA-II plus calculator Practice Problems (Chp 7 risk and return) Problem 1: You can form a portfolio of two assets,

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Practice Problems (Chp 7 risk and return) Problem 1: You can form a portfolio of two assets, A and B, whose returns have the following characteristics: Expected return Stock A Standard deviation Correlation 12% 15% 0.6 B 20% 40% If you demand an expected return of 14%, what are the portfolio weights? What is the portfolio's standard deviation

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