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Suppose you created a 2-stock portfolio by investing $50,000 in High Tech and $50,000 in Collections. (1) Calculate the expected return, the standard deviation, the

Suppose you created a 2-stock portfolio by investing $50,000 in High Tech and $50,000 in Collections. (1) Calculate the expected return, the standard deviation, the coefficient of variation, and the Sharpe ratio for this portfolio, and fill in the appropriate blanks in the table.image text in transcribed

image text in transcribed

Using data from number 1: The yield curve is currently flat; that is, long-term Treasury bonds also have a 3.0% yield. Consequently, Merrill Finch assumes that the risk-free rate is 3.0%. (2) Write out the SML equation, use it to calculate the required rate of return on each alternative.

image text in transcribed Suppose you created a 2 -stock portfolio by investing $50,000 in High Tech and $50,000 in Collections. (1) Calculate the expected return, the standard deviation, the coefficient of variation, and the Sharpe ratio for this portfolio, and fill in the appropriate blanks in the table. Suppose you created a 2 -stock portfolio by investing $50,000 in High Tech and $50,000 in Collections. (1) Calculate the expected return, the standard deviation, the coefficient of variation, and the Sharpe ratio for this portfolio, and fill in the appropriate blanks in the table

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