Question: Both pictures are the same question, only dping part B. INTERMEDIATE vabo banding 5. You are considering investing in two securities, X and Y. The

Both pictures are the same question, only dping part B.  Both pictures are the same question, only dping part B. INTERMEDIATE
vabo banding 5. You are considering investing in two securities, X and

INTERMEDIATE vabo banding 5. You are considering investing in two securities, X and Y. The following data are available for the two securities: Security X Security Y Expected return 0.10 0.07 Standard deviation of returns 0.08 0.04 Beta 1.10 0.75 302 Part 2: Determinants of Valuation b. What happens to the expected return and standard deviation of returns of the portfolio in Part a if 70 percent of your funds are invested in Security X and bod 30 percent of your funds are invested in Security Y

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