Question: 8-9 Compute the (a) expected return and (b) stan- dard deviation of the following investments: TABC Probability 0.1 22.0% PRST -2.0% 12.0 30.0 0.6 12.0

8-9 Compute the (a) expected return and (b) stan- dard deviation

8-9 Compute the (a) expected return and (b) stan- dard deviation of the following investments: TABC Probability 0.1 22.0% PRST -2.0% 12.0 30.0 0.6 12.0 0.3 2.0 (c) Suppose you form a portfolio that consists of 60 percent Investment ABC and 40 percent In- vestment RST. Compute the expected return and standard deviation of the portfolio. (d) Compare the portfolio's standard deviation with the individ- ual investments' standard deviations

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