Question
Toyota Corp.'s stock is $35 per share. Its expected return is 20% and variance is 10%. Honda Corp.'s stock is $18 per share. Its expected
Toyota Corp.'s stock is $35 per share. Its expected return is 20% and variance is 10%.
Honda Corp.'s stock is $18 per share. Its expected return is 18% and variance is 9%.
Benz Corp.'s stock is $50 per share. Its expected return is 11% and variance 5%.
What would be the expected return of a portfolio consisting of 50% Toyota and 50% Honda?
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Analysis For Financial Management
Authors: Robert C. Higgins
12th International Edition
1260091910, 9781260091915
