Question: Please answer ef E lio 20% 30% 35% 15% Return 6.00% 14.00% 11.00% 5.00% Deviation 33.00% 37.00% 40.00% 42.00% Inc. Babish & Co. Comell Industries

Please answer Please answer ef E lio 20% 30% 35% 15% Return 6.00%

ef E lio 20% 30% 35% 15% Return 6.00% 14.00% 11.00% 5.00% Deviation 33.00% 37.00% 40.00% 42.00% Inc. Babish & Co. Comell Industries What is the expected return on Andre's stock portfolio? ? 15.00% ? 13.50% ? 10.00% o 7.50% Suppose each stock in Andre's portfolio has a correlation coefficient of 0.40 (p- 0.40) with each of the other stocks. | The market's average standard deviation is approximately 20%, and the weighted average of the risk of the |||individual securities in the partially diversified four-stock portfolio is 38% with a correlation coefficient of o.30 with the other stocks in the portfolio f 40 additional, random were added to the portfolio, what effect would this have on the ly selected stocks portfolio's standard deviation (%) O It would gradually settle at approximately 50% O It would gradually settle at approximately 20%. 0 It would decrease gradually, settling at about 0%; Oiit.vnould stay constant at 38%

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