Question
You are considering two assets with the following characteristics. E (R 1 ) = 0.15 E ( 1 ) = 0.10 W 1 =0.5 E
You are considering two assets with the following characteristics.
E (R1) = 0.15 E (1) = 0.10 W1=0.5
E (R2) = 0.20 E (2) = 0.20 W2=0.5
(a) Compute the mean and standard deviation of two portfolios if r1, 2=0.40 and -0.60, respectively. Plot the two portfolios on a risk-return graph and briefly explain the results.(20 marks)
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Finance Of International Trade
Authors: Eric Bishop
1st Edition
0750659084, 978-0750659086
