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) Your current portfolio of investments has an expected rate of return ot standard deviation of 16%. Table 1 shows the information about four B, C, and D. If your objective with portfolio selection is to efficiently di you wanted to add one of these four portfolios to your current portfolic more than 100 words, which portfolio you would prefer and why would consider the other portfolios. Tablo 1

) Your current portfolio of investments has an expected rate of return ot standard deviation of 16%. Table 1 shows the information about four B, C, and D. If your objective with portfolio selection is to efficiently di you wanted to add one of these four portfolios to your current portfolic more than 100 words, which portfolio you would prefer and why would consider the other portfolios. Tablo 1

MATLAB: An Introduction with Applications
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
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Question 3 a) Your current portfolio of investments has an expected rate of return of 12% and a standard deviation of 16%. Table 1 shows the information about four risky portfolios A, B, C, and D. If your objective with portfolio selection is to efficiently diversify risk and you wanted to add one of these four portfolios to your current portfolio, explain, in no more than 100 words, which portfolio you would prefer and why would you not consider the other portfolios. Table 1 Expected Return (%) Portfolio Standard Correlation with Deviation (%) current portfolio A 13% 15% 0.35 В 17% 25% 0.85 C 10% 15% 0.30 16% 25% 0.80
Transcribed Image Text:Question 3 a) Your current portfolio of investments has an expected rate of return of 12% and a standard deviation of 16%. Table 1 shows the information about four risky portfolios A, B, C, and D. If your objective with portfolio selection is to efficiently diversify risk and you wanted to add one of these four portfolios to your current portfolio, explain, in no more than 100 words, which portfolio you would prefer and why would you not consider the other portfolios. Table 1 Expected Return (%) Portfolio Standard Correlation with Deviation (%) current portfolio A 13% 15% 0.35 В 17% 25% 0.85 C 10% 15% 0.30 16% 25% 0.80
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