QUESTION 14 An investor has decided to form a portfolio by putting 45% of his money into Google's stock and the remaining money into Apple's stock. The investor assumes that the expected returns will be 12% on Google and 20% on Apple, and that the standard deviations will be 0.10 and 0.20, respectively. What is the variance of returns on the portfolio, if the investor assumes that the two stocks' returns are perfectly positively correlated? O Var [Return on portfolio] = 0.024 O Var [Return on portfolio] = 0.042 O Var [Return on portfolio] = 0.003 O Var [Return on portfolio] = 0.004

QUESTION 14 An investor has decided to form a portfolio by putting 45% of his money into Google's stock and the remaining money into Apple's stock. The investor assumes that the expected returns will be 12% on Google and 20% on Apple, and that the standard deviations will be 0.10 and 0.20, respectively. What is the variance of returns on the portfolio, if the investor assumes that the two stocks' returns are perfectly positively correlated? O Var [Return on portfolio] = 0.024 O Var [Return on portfolio] = 0.042 O Var [Return on portfolio] = 0.003 O Var [Return on portfolio] = 0.004

A First Course in Probability (10th Edition)

10th Edition

ISBN:9780134753119

Author:Sheldon Ross

Publisher:Sheldon Ross

Chapter1: Combinatorial Analysis

Section: Chapter Questions

Problem 1.1P: a. How many different 7-place license plates are possible if the first 2 places are for letters and...

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