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Suppose that there are only two stocks in the market and a risk free asset E(Ra)=18%, SD(Ra)=15% E(Rb)=12%, SD(Rb)=7%) COV(Ra,Rb)=0 Rf=5%, Supposed that you
Suppose that there are only two stocks in the market and a risk free asset E(Ra)=18%, SD(Ra)=15% E(Rb)=12%, SD(Rb)=7%) COV(Ra,Rb)=0 Rf=5%, Supposed that you want to invest in a portfolio with E(Rp)=15%. a. Calculate the SD(Rp) b. Write down the portfolio's weights for each one of the securities you decided to invest in.
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Understanding financial statements
Authors: Lyn M. Fraser, Aileen Ormiston
9th Edition
136086241, 978-0136086246
