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Q2. Mr. Amitabh B wants to invest 100,000 in the Indian equity market. His financial advisor has chosen the following two stocks. The correlation between

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Q2. Mr. Amitabh B wants to invest 100,000 in the Indian equity market. His financial advisor has chosen the following two stocks. The correlation between the stocks is 0.15. Stocks Risk Expected Return 12% 10% ABB ACC 10% 18% Due to some emergency, the financial analyst has to left the meeting. Now Mr. AB is faced with the conundrum of choosing the best option. You need to help him by calculating the portfolio return of the following portfolios which is considered by Mr. AB for his investment. i. 100% investment in ABB only. ii. 3/4th in ABB and 1/4th in ACC. iii. 100% investment in ACC. iv. Also indicate which is the best portfolio based on the risk and return profile

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