Andre is an amateur investor who holds a small portfolio consisting of only four stocks. The...
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Andre is an amateur investor who holds a small portfolio consisting of only four stocks. The stock holdings in his portfolio are shown in the following table: Stock Percentage of Portfolio Expected Return Standard Deviation Artmis Inc. 20% 8.00% 27.00% Babish & Co. 30% 14.00% 31.00% Cornell Industries 35% 13.00% 34.00% Danforth Motors 15% 5.00% 36.00% What is the expected return on Andre's stock portfolio? O 11.10% O 14.99% O 16.65% 8.32% Suppose each stock in Andre's portfolio has a correlation coefficient of 0.4 (p = 0.4) with each of the other stocks. If the weighted average of the risk of the individual securities (as measured by their standard deviations) included in the partially diversified four-stock portfolio is 32%, the portfolio's standard deviation (op) most likely is 32%. Andre is an amateur investor who holds a small portfolio consisting of only four stocks. The stock holdings in his portfolio are shown in the following table: Stock Percentage of Portfolio Expected Return Standard Deviation Artmis Inc. 20% 8.00% 27.00% Babish & Co. 30% 14.00% 31.00% Cornell Industries 35% 13.00% 34.00% Danforth Motors 15% 5.00% 36.00% What is the expected return on Andre's stock portfolio? O 11.10% O 14.99% O 16.65% 8.32% Suppose each stock in Andre's portfolio has a correlation coefficient of 0.4 (p = 0.4) with each of the other stocks. If the weighted average of the risk of the individual securities (as measured by their standard deviations) included in the partially diversified four-stock portfolio is 32%, the portfolio's standard deviation (op) most likely is 32%.
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