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, o Correlation 3 Doors, Inc. 12% Down Co. 10% 32 34 .17

Essentials Of Investments
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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, σ
Correlation
3 Doors, Inc.
12%
Down Co.
10%
32
34
.17
Expected return
%
Standard deviation
%
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, σ Correlation 3 Doors, Inc. 12% Down Co. 10% 32 34 .17 Expected return % Standard deviation %
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