Consider two stocks, A and B. Expected returns on these stocks are: TA 10.79%, TB =...
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Consider two stocks, A and B. Expected returns on these stocks are: TA 10.79%, TB = 13.80%. = Standard deviations of their returns are: A = 21.83%, B = 34.29%. Returns on these two stocks are uncorrelated with each other. Use the above to answer the following (A) - (D). Suppose the risk-free interest rate is 4.03%. If you were to form a portfolio of A and B only, with the expected return of 15.00%, what would be the standard deviation of this portfolio's return? % 02 Question 3, Part (B) 0.0 / 5.0() What is the lowest possible standard deviation you can achieve by forming a portfolio of A and B only? % 02 1717 1777 Consider two stocks, A and B. Expected returns on these stocks are: TA 10.79%, TB = 13.80%. = Standard deviations of their returns are: A = 21.83%, B = 34.29%. Returns on these two stocks are uncorrelated with each other. Use the above to answer the following (A) - (D). Suppose the risk-free interest rate is 4.03%. If you were to form a portfolio of A and B only, with the expected return of 15.00%, what would be the standard deviation of this portfolio's return? % 02 Question 3, Part (B) 0.0 / 5.0() What is the lowest possible standard deviation you can achieve by forming a portfolio of A and B only? % 02 1717 1777
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