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According to an investment web site, the performance of two index funds in the past 10 years is summarized by the following table. Fund Mean Standard Deviation A 6% 6% В 8% 8% The web site also reveals that the correlation coefficient between Funds A and B is 0.4. If a portfolio consists of 50% in each of Funds A and B, what are the expected return and standard deviation for such a portfolio? Select the closest numbers. standard deviation 8.21% standard deviation 5.88% standard deviation 8.21% standard deviation 5.88% а. mean = 7% %3D %3D b. mean = 6.5% %3D с. mean = 6% %3D d. mean = 7% None of the above %3D е.

According to an investment web site, the performance of two index funds in the past 10 years is summarized by the following table. Fund Mean Standard Deviation A 6% 6% В 8% 8% The web site also reveals that the correlation coefficient between Funds A and B is 0.4. If a portfolio consists of 50% in each of Funds A and B, what are the expected return and standard deviation for such a portfolio? Select the closest numbers. standard deviation 8.21% standard deviation 5.88% standard deviation 8.21% standard deviation 5.88% а. mean = 7% %3D %3D b. mean = 6.5% %3D с. mean = 6% %3D d. mean = 7% None of the above %3D е.

Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018
Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018
18th Edition
ISBN:9780079039897
Author:Carter
Publisher:Carter
Chapter10: Statistics
Section10.4: Distributions Of Data
Problem 19PFA
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According to an investment web site, the performance of two index funds in the past 10 years is summarized by the following table. Fund Mean Standard Deviation A 6% 6% В 8% 8% The web site also reveals that the correlation coefficient between Funds A and B is 0.4. If a portfolio consists of 50% in each of Funds A and B, what are the expected return and standard deviation for such a portfolio? Select the closest numbers. standard deviation 8.21% standard deviation 5.88% standard deviation 8.21% standard deviation 5.88% а. mean = 7% %3D %3D b. mean = 6.5% %3D с. mean = 6% %3D d. mean = 7% None of the above %3D е.
Transcribed Image Text:According to an investment web site, the performance of two index funds in the past 10 years is summarized by the following table. Fund Mean Standard Deviation A 6% 6% В 8% 8% The web site also reveals that the correlation coefficient between Funds A and B is 0.4. If a portfolio consists of 50% in each of Funds A and B, what are the expected return and standard deviation for such a portfolio? Select the closest numbers. standard deviation 8.21% standard deviation 5.88% standard deviation 8.21% standard deviation 5.88% а. mean = 7% %3D %3D b. mean = 6.5% %3D с. mean = 6% %3D d. mean = 7% None of the above %3D е.
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