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You form a risky-risky portfolio composed of two stocks: A and B. Correlation =0.2 The mean and the standard deviation of the A-B portfolio with
You form a risky-risky portfolio composed of two stocks: A and B. Correlation =0.2 The mean and the standard deviation of the A-B portfolio with given weights were calculated for you: Use the above information to answer questions 10 - 13. The TBill rate is 5%. The risk premium on the 75 -in- A/25-in-B portfolio is: % Its Sharpe Ratio is: #11 Consider the 75-in-A/25-in-B portfolio and combine it with the T-bill yielding 5\%. Fill in the mean and the standard deviation of the new risky-riskless portfolio with given weights
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