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The expected return of the portfolio with stock B is ? %.(Round to two decimal places.) The expected return of the portfolio with stock C
The expected return of the portfolio with stock B is ? %.(Round to two decimal places.)
The expected return of the portfolio with stock C is ? %.(Round to two decimal places.)
The standard deviation of the portfolio with stock B is ? %.(Round to two decimal places.)
The standard deviation of the portfolio with stock C is ????%.(Round to two decimal places.)
You would advise your client to choose stock B? or stock C?
Your client has $96,000 invested in stock A. She would like to build a two-stock portfolio by investing another $96,000 in either stock B or C. She wants a portfolio with an expected return of at least 15.0% and as low a risk as possible, but the standard deviation must be no more than 40%. What do you advise her to do, and what will be the portfolio expected return and standard deviation? A Expected Return 16% 14% 14% Standard Deviation 47% 36% 36% Correlation with A 1.00 0.15 0.31Step by Step Solution
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