Question: AOL FINAL HW Q Search the 7. Portfolio expected return and risk 0 X A collection of tinancial assets and securities is referred to as

AOL FINAL HW Q Search the 7. Portfolio expected return and risk 0 X A collection of tinancial assets and securities is referred to as a portfolio Most individuals and to invest in a porto making portfolio analysis an integral part of the field of finance. Just like stand-alone assets and securities, portfolios are posed to Port refers to the possibility that an investment portfolio will not generate the investors expected rate of return Analyzing portfolio risk and return involves the understanding of expected returns from a portfolio Consider the following case Andre is an amateur Investor who holds a small portfolio consisting of only tour stocks. The stock holdings in his portfolio are shown in the forowing table Percentage of Portfolio Expected Return 209 6.004 Stock Artemis Inc. Babish & Co Cornell Industries Danforth Motors Standard Deviation 38.00 42.00 45 OON 304 14.00 35 13.00 3.00% 159 47.00% What is the expected return on Andres stock portfolio 7.80% 15.60% SON 12/12 4 of 10.40 66F Mostly sunny 07.804 14.049 15.60 O 10.40 Suppose each stock in Andre's portfolio has a correlation coeficient of 0.40 -0.4) with each of the other stocks. If the weighted average of the of the individual securities (as measured by their standard deviations included in the partially diversified four stock portfolio is 43the portfolio standard deviation () most likely is Save & Continue Continue without av

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