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Suppose you have the above data on AAPL and Netflix, compute the expected return and the standard deviation of an equally weighted portfolio invested
Suppose you have the above data on AAPL and Netflix, compute the expected return and the standard deviation of an equally weighted portfolio invested in the two securities. Please round to three decimal places. Is there a diversification benefit? AAPL NFLX E(R) 0.08 0.17 Standard Deviation 0.11 0.23 Correlation 0.45
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Expected Return of Portfolio can be calculated as w1 ER1 w2 ER2 ...
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Fundamentals Of Corporate Finance
Authors: Jonathan Berk, Peter DeMarzo, Jarrad Harford
5th Edition
0135811600, 978-0135811603
