Consider the following information: a. Your portfolio is invested 40 percent each in A and C, and

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Consider the following information:
Consider the following information:a. Your portfolio is invested 40 percent

a. Your portfolio is invested 40 percent each in A and C, and 20 percent in B. What is the expected return of the portfolio?

b. What is the variance of this portfolio? The standard deviation?

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...
Portfolio
A portfolio is a grouping of financial assets such as stocks, bonds, commodities, currencies and cash equivalents, as well as their fund counterparts, including mutual, exchange-traded and closed funds. A portfolio can also consist of non-publicly...
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Corporate Finance Core Principles and Applications

ISBN: 978-0077905200

3rd edition

Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe, Bradford

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