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Stock Expected Return 6.00% Artemis Inc Babich & Co Cornell Industries Danforth Motors Percentage of Portfolio 20% 30% 35% 15% 14,009 11.00% 3.004 Standard Deviation
Stock Expected Return 6.00% Artemis Inc Babich & Co Cornell Industries Danforth Motors Percentage of Portfolio 20% 30% 35% 15% 14,009 11.00% 3.004 Standard Deviation 25.00% 29.00% 32.00% 34.00% What is the expected return on Andre's stock portfolio? 9.70% 14.55% 7.28% 13.10% Suppose each stock in Andre's portfolio has a correlation coefficient of 0.4 (p = 0.4) with each of the other stocks. If the weighted average of the risk of the individual securities (as measured by their standard deviations) included in the partially diversified four stock portfolio is 30%, the portfolio's standard deviation () most likely is 30%
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