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turned 2 1 years of age. The portfor and Harley Davidson ( HOG ) a . Based on the current portfolio composition and the expected
turned years of age. The portfor and Harley Davidson HOG
a Based on the current portfolio composition and the expected rates of return, what is the expected rate of return for Penny's portfolio?
b If Penny wants to increase her expected portfolio rate of retum, she can increase the allocated weight of the portfolio she has invested in stock Ford and Harley Davidson and decrease her holdings of Treasury bills. If Penny moves all her money out of Treasury bills and splits it evenly between the lwo stocks, what will be her expected rate of return?
ta table pe will reap a higher expected portfolio return, so why would anyone want to hold Treasury bills in
tableExpected,S ValueReturnreasury bills,ord Flarley Davidson HOGon the roon by in order to copy its contents into a spreadsheet
return, the expected rate of return for Penny's portfolio is Round to two decimal places. een the two stocks, her expected rate of return for her portfolio is Round to two he will reap a higher expected portfolio return, so why would anyone want to hold Treasury bills in they are riskfree compared to other securities Therefore, many people include Treasury bills in of return than Ford and Harley Davidson stock, this is not always true. Often times Treasury bills d in a portfolio.
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