We have the following information on a portfolio consisting of Stocks A, B, and C:                                                                                     A                                   B                                 C Expectd annual return                                              25%                               20%                                 15% Standard Deviation of Return                                   35%                                  30%                               25% Price per share                                                             100                                   85                                 75 # shares                                                                  100,000                              150,000                           200,000   correlation coefficient (A,B)      0.5 correlation coefficient (A,C)        0.2 correlation coefficient (B,C)            .8 number of days per year              365   What is the annual expected portfolio return. Include formula, variables, values, and market values of A, B, and C.

Essentials Of Investments
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Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
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We have the following information on a portfolio consisting of Stocks A, B, and C:

                                                                                    A                                   B                                 C

Expectd annual return                                              25%                               20%                                 15%

Standard Deviation of Return                                   35%                                  30%                               25%

Price per share                                                             100                                   85                                 75

# shares                                                                  100,000                              150,000                           200,000

 

correlation coefficient (A,B)      0.5

correlation coefficient (A,C)        0.2

correlation coefficient (B,C)            .8

number of days per year              365

 

What is the annual expected portfolio return. Include formula, variables, values, and market values of A, B, and C.     

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