v (b) What is the expected portfolio return on a portfolio comprised of i. 25% ABC and 75% XYZ? ii. 50% ABC and 50% XYZ? (Round answer's to 3 decimal places, e.g. 5.275.) E(Portfolio Return) 25% ABC and 75% XYZ % 50% ABC and 50% XYZ
v (b) What is the expected portfolio return on a portfolio comprised of i. 25% ABC and 75% XYZ? ii. 50% ABC and 50% XYZ? (Round answer's to 3 decimal places, e.g. 5.275.) E(Portfolio Return) 25% ABC and 75% XYZ % 50% ABC and 50% XYZ
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
Problem 1PS
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![### Question (a)
Your answer is partially correct. Try again.
**Question:**
What is the average return and standard deviation for each stock? (Round answers to 2 decimal places.)
**Table:**
| | ABC | XYZ |
|------------|--------|-------|
| Average return | 6.00 % | 6.25 % |
| Standard deviation | 11.55% | 10.28% |
The incorrect entries provided are shown with a red "X," suggesting that these need revision.
**Options Available:**
- **Show Solution**
- **Link to Text**
### Question (b)
**Question:**
What is the expected portfolio return on a portfolio comprised of
i. 25% ABC and 75% XYZ?
ii. 50% ABC and 50% XYZ?
(Round answers to 3 decimal places, e.g., 5.275.)
**Expected Portfolio Return (E):**
- **25% ABC and 75% XYZ:** [Input needed] %
- **50% ABC and 50% XYZ:** [Input needed] %
This section requires calculations for the expected portfolio return based on different weightings of ABC and XYZ stocks.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ff3317c90-5750-46e3-8a5a-b8a5f676500b%2F270ff0e6-5613-438e-a171-7a7bdf32c5a9%2Fanakiy9_processed.jpeg&w=3840&q=75)
Transcribed Image Text:### Question (a)
Your answer is partially correct. Try again.
**Question:**
What is the average return and standard deviation for each stock? (Round answers to 2 decimal places.)
**Table:**
| | ABC | XYZ |
|------------|--------|-------|
| Average return | 6.00 % | 6.25 % |
| Standard deviation | 11.55% | 10.28% |
The incorrect entries provided are shown with a red "X," suggesting that these need revision.
**Options Available:**
- **Show Solution**
- **Link to Text**
### Question (b)
**Question:**
What is the expected portfolio return on a portfolio comprised of
i. 25% ABC and 75% XYZ?
ii. 50% ABC and 50% XYZ?
(Round answers to 3 decimal places, e.g., 5.275.)
**Expected Portfolio Return (E):**
- **25% ABC and 75% XYZ:** [Input needed] %
- **50% ABC and 50% XYZ:** [Input needed] %
This section requires calculations for the expected portfolio return based on different weightings of ABC and XYZ stocks.
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