Back to Assignment

Attempts

Average $\frac{0}{11}$

Problem $6-06$

$$ eBook

Problem $6-06$

Given:

$E(R_1)=0\mathrm{.}13$

$E(R_2)=0\mathrm{.}18$

$E({}_1)=0\mathrm{.}04$

$E({}_2)=0\mathrm{.}05$

a$.w_1=1\mathrm{.}00$

Expected return of a two$-$stock portfolio:

Expected standard deviation of a two$-$stock portfolio

b$.w_1=0\mathrm{.}65$

Expected return of a two$-$stock portfolio:

Expected standard deviation of a two$-$stock portfolio:

c$.W_1=0\mathrm{.}40$

Expected return of a two$-$stock portfolio:

Expected standard deviation of a two$-$stock portfolio:

d$.w_1=0\mathrm{.}25$

Expected return of a two$-$stock portfolio:

Expected standard deviation of a two$-$stock portfolit

e$.w_1=0\mathrm{.}10$

Expected return of a two$-$stock portfolio:

Expected standard deviation of a two$-$stock portfolio

Choose the correct risk$-$return graph for weights from parts $($a$)$ through $($e$)$ when $r_{i,j}=-0\mathrm{.}70$;$0\mathrm{.}00$;$0\mathrm{.}70.$