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Use the following information for the next three problems. Asset (B) E(RB)- 15% Asset (A) E(RA)-12% CA 5% WA-0.30 WB 0.70 coVA,B 0.0010 4.5 What
Use the following information for the next three problems. Asset (B) E(RB)- 15% Asset (A) E(RA)-12% CA 5% WA-0.30 WB 0.70 coVA,B 0.0010 4.5 What is the expected return of a portfolio of two risky assets if the expected return E(R), standard deviation (a), covariance (covij), and asset weight (w) are as shown above? 4.6 What is the standard deviation of this portfolio? 4.7 What is the standard deviation of this portfolio if the covA,B--0.0010
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