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What is the expected return on a portfolio of two risky assets if the expected return E(R i ), the standard deviation ( i ),

 What is the expected return on a portfolio of two risky assets if the expected return E(R i ), the standard deviation (σ i ), the covariance (COV i,j ) and the asset weight (W i ) are as is shown above?

Figure 7.1
USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEMS

Active (A)

Active (B)

E( RA ) = 10%

E( RB ) = 15%

(s A ) = 8%

(s B ) = 9.5%

WA = 0,25

B = 0,75

The A,B = 0,006

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