Suppose that in addition to investing in one more stock you can invest in T-bills as well.

Question:

Suppose that in addition to investing in one more stock you can invest in T-bills as well. Would you change your answers to Problems 17 and 18 if the T-bill rate is 8%?
The correlation coefficients between pairs of are as follows: Corr( A, B ) = .85; Corr( A, C ) = .60; Corr( A, D ) = .45. Each stock has an of 8% and a standard deviation of 20%.

Stocks
Stocks or shares are generally equity instruments that provide the largest source of raising funds in any public or private listed company's. The instruments are issued on a stock exchange from where a large number of general public who are willing... Expected Return
The expected return is the profit or loss an investor anticipates on an investment that has known or anticipated rates of return (RoR). It is calculated by multiplying potential outcomes by the chances of them occurring and then totaling these...