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USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S) Asset (A) Asset (B) E(RA) = 14% E(RB) = 16% (σA) = 13% (σB) = 18% WA = 0.4 WB = 0.6 COVA,B = 0.0024 Refer to Exhibit 6.15. What is the expected return of a portfolio of two risky assets if the expected return E(Ri), standard deviation ( σ i ), covariance (COVi,j), and asset weight (Wi) are as shown above? a. 15.2% b. 13.8% c. 16.8% d. 14.6% e. 15.0%

USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S) Asset (A) Asset (B) E(RA) = 14% E(RB) = 16% (σA) = 13% (σB) = 18% WA = 0.4 WB = 0.6 COVA,B = 0.0024 Refer to Exhibit 6.15. What is the expected return of a portfolio of two risky assets if the expected return E(Ri), standard deviation ( σ i ), covariance (COVi,j), and asset weight (Wi) are as shown above? a. 15.2% b. 13.8% c. 16.8% d. 14.6% e. 15.0%

Essentials Of Investments
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
Section: Chapter Questions
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QUESTION 5

  1. Exhibit 6.15

    USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)

    Asset (A)

    Asset (B)

    E(RA) = 14%

    E(RB) = 16%

    (σA) = 13%

    (σB) = 18%

    WA = 0.4

    WB = 0.6

    COVA,B = 0.0024

     


    Refer to Exhibit 6.15. What is the expected return of a portfolio of two risky assets if the expected return E(Ri), standard deviation ( σ i ), covariance (COVi,j), and asset weight (Wi) are as shown above?
      a.
    15.2%
      b.
    13.8%
      c.
    16.8%
      d.
    14.6%
      e.
    15.0%
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