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Urgent help me Oliver John is actively trading shares in the New York Stock Exchange. He now holds 2,000 shares of McDonalds and 6,000 shares
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Oliver John is actively trading shares in the New York Stock Exchange. He now holds 2,000 shares of McDonalds and 6,000 shares of Boeing. The current price of McDonalds' stock and Boeing's stock is USD20 and USD 10 per share respectively. The expected return on McDonalds' stock is 9 percent, while the expected retum on Boeing's stock is 12 percent. The standard deviation for McDonalds stock and Boeing's stock is 0.16 percent and 0.40 percent respectively. The correlation between the returns on the two stocks is 0.50. If Oliver sells 4,000 shares of Boeing's stock at current price, what is the expected return and standard deviation of his new portfolio? (10 marks)Step by Step Solution
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