Use the following information to calculate the expected return and standard deviatio Doors, Inc., and 30 percent invested in Down Co. (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) Expected return, (A) Standard deviation, o Correlation Expected return Standard deviation 3 Doors, Inc. 12% 32 17 Down Co. 10% 34

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Use the following information to calculate the expected return and standard deviation of a portfolio that is 70 percent invested in 3
Doors, Inc., and 30 percent invested in Down Co. (Do not round intermediate calculations. Enter your answers as a percent
rounded to 2 decimal places.)
Expected return, E(R)
Standard deviation, a
Correlation
Expected return
Standard deviation
3 Doors, Inc.
12%
32
17
Down Co.
10%
34
Transcribed Image Text:Use the following information to calculate the expected return and standard deviation of a portfolio that is 70 percent invested in 3 Doors, Inc., and 30 percent invested in Down Co. (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) Expected return, E(R) Standard deviation, a Correlation Expected return Standard deviation 3 Doors, Inc. 12% 32 17 Down Co. 10% 34
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