Question: answer all qs in the q Your client has $101 ,000 invested in stock A. She would like to build a two-stock portfolio by investing

Your client has $101 ,000 invested in stock A. She would like

answer all qs in the q

Your client has $101 ,000 invested in stock A. She would like to build a two-stock portfolio by investing another $101 ,000 in either stock B or C. She wants a portfolio with an expected return of at least 14.5% and as low a risk as possible, but the standard deviation must be no more than 40%. What do you advise her to do, and what will be the portfolio expected return and standard deviation? c Expected Return 12% 12% Standard Deviation 47% 38% 38% Correlation with A 1.00 0.12 0.33 The expected return of the portfolio with stock B is 14.5 %. (Round to one decimal place.) The expected return of the portfolio with stock C is h. (Round to one decimal place.)

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