The table below lists the SDs (%) and the expected return (%) for four stocks. An...

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The table below lists the SDs (%) and the expected return (%) for four stocks. An investor shorts C, and uses the proceeds to invest in A. The combined portfolio is a long-short (net zero-investment) portfolio. What is the expected return of her portfolio? Stock Standard Deviation Expected return A 20% 12% B 8% 6% C 25% 9% D 12% 10% The table below lists the SDs (%) and the expected return (%) for four stocks. An investor shorts C, and uses the proceeds to invest in A. The combined portfolio is a long-short (net zero-investment) portfolio. What is the expected return of her portfolio? Stock Standard Deviation Expected return A 20% 12% B 8% 6% C 25% 9% D 12% 10%

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Stock A Long position Standard Deviation 20 Expecte... View the full answer