Question: 7. Portfolio risk and return* Here are returns and standard deviations for four investments. Return (96) Standard Deviation (96) TreasuryI bills 6 0 Stock P

7. Portfolio risk and return* Here are returns
7. Portfolio risk and return* Here are returns and standard deviations for four investments. Return (96) Standard Deviation (96) TreasuryI bills 6 0 Stock P 10 14 Stock 0 14.5 28 Stock R 21 26 Calculate the standard deviations of the following portfolios. a. 50% in Treasury bills, 50% in stock P. b. 50% each in Q and R, assuming the shares have - Perfect positive correlation. - Perfect negative correlation. - No correlation. 0. Plot a figure like Figure 8.3 for Q and R, assuming a correlation coefficient of .5. d. Stock Q has a lower return than R but a higher standard deviation. Does that mean that Q's price is too high or that R's price is too low

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