An investor has decided to form a portfolio by putting 55% of his money into Tesla's stock and 45% into Honda's stock. The investor assumes that the expected returns will be 18% on Tesla and 12% on Honda, and that the standard deviations will be 15% and 10%, respectively. What is the expected (mean) return on the portfolio? O E [Return on portfolio] = 0.135 O E [Return on portfolio] = 0.204 O E [Return on portfolio] = 0.153 O E [Return on portfolio] = 0.351

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QUESTION 27
An investor has decided to form a portfolio by putting 55% of his money into Tesla's stock and 45% into Honda's stock. The
investor assumes that the expected returns will be 18% on Tesla and 12% on Honda, and that the standard deviations will
be 15% and 10%, respectively. What is the expected (mean) return on the portfolio?
O E [Return on portfolio] = 0.135
%3D
O E [Return on portfolio] = 0.204
%3D
O E [Return on portfolio] = 0.153
O E [Return on portfolio] = 0.351
%3D
Transcribed Image Text:QUESTION 27 An investor has decided to form a portfolio by putting 55% of his money into Tesla's stock and 45% into Honda's stock. The investor assumes that the expected returns will be 18% on Tesla and 12% on Honda, and that the standard deviations will be 15% and 10%, respectively. What is the expected (mean) return on the portfolio? O E [Return on portfolio] = 0.135 %3D O E [Return on portfolio] = 0.204 %3D O E [Return on portfolio] = 0.153 O E [Return on portfolio] = 0.351 %3D
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