A portfolio consists of Stock and Stock B.Data for the 2 stocks is shown below. Stock A:

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A portfolio consists of Stock and Stock B.Data for the 2 stocks is shown below.

Stock A: expected return10%Stock A: standard deviation30%Stock B: expected return13%Stock B: standard deviation45%Correlation between A and B0.25Stock A beta1.30Stock B beta1.20% portfolio in Stock A40%% portfolio in Stock B60%

a.Calculate the expected return of the portfolio.

b.Calculate the standard deviation of the portfolio.

c.Calculate the beta of the portfolio

d.Does the portfolio have more risk, less risk, or the same risk as the market? Explain.

e.Will your portfolio likely outperform, underperform, or perform the same as the market in a period when stocks are rapidly falling in value?Why?

Posted Date: May 18, 2024 05:02 AM

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A portfolio consists of Stock and Stock B.Data for the 2 stocks is shown below. Stock A:

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