Question: 8-12 Eompute the (a) expected return and (b) standard deviation of the following investments: Probability PABC PRST 0.1 22.0% -10.0% 0.6 12.0 10.0 0.3 2.0

8-12 Eompute the (a) expected return and (b) standard deviation of

8-12 Eompute the (a) expected return and (b) standard deviation of the following investments: Probability PABC PRST 0.1 22.0% -10.0% 0.6 12.0 10.0 0.3 2.0 30.0 (c) Suppose you form a portfolio that consists of 60 percent Investment ABC and 40 percent Investment RST. Compute the expected return and standard deviation of the portfolio. (d) Compare the portfolio's standard deviation with the individual investments' standard deviations. (LO 8-3)

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