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You are given the expected rate of return for two medical equipment: Years Equipment 1 Equipment 2 2018 7% 5% 2019 8% 6% 2020 9%
You are given the expected rate of return for two medical equipment: Years Equipment 1 Equipment 2 2018 7% 5% 2019 8% 6% 2020 9% 7% Requirement: a) Determine the standard deviation for the portfolio if 30% is invested in Equipment 1 and 70% in Equipment 2. (10 points) b) Determine if this portfoliuwould be accepted if investments with a CV above 0.5 are rejected. (5 points) You are given the expected rate of return for two medical equipment: Years Equipment 1 Equipment 2 2018 7% 5% 2019 8% 6% 2020 9% 7% Requirement: a) Determine the standard deviation for the portfolio if 30% is invested in Equipment 1 and 70% in Equipment 2. (10 points) b) Determine if this portfoliuwould be accepted if investments with a CV above 0.5 are rejected. (5 points)
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