Kagera Company has made a portfolio of these three securities: The correlation coefficient between Kasai and Limpopo
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Kagera Company has made a portfolio of these three securities:
The correlation coefficient between Kasai and Limpopo is 0.6. If the returns are normally distributed, find the probability that the return of the portfolio is more than 15%.
Transcribed Image Text:
Cost E(R) G(R) Treasury bond Kasai Corporation Limpopo Company $70,000 $100,000 $80,000 6% 15% 25% 16% 30% Cost E(R) G(R) Treasury bond Kasai Corporation Limpopo Company $70,000 $100,000 $80,000 6% 15% 25% 16% 30%
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So Probability of return more than 15 4105 AQ AR AS AT AU Cost E R Std dev weights re... View the full answer
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