
To determine: Expected return on portfolio and the risk of the portfolio.

Explanation of Solution
Calculation of expected return on security A:
Therefore, expected return on security A is 12%
Calculation of expected return on security B:
Therefore, expected return on security B is 16.15%
Calculation of expected return on security C:
Therefore, expected return on security C is 12%
Calculation of expected return on portfolio:
Therefore, expected return on portfolio is 14.93%
Calculation of standard deviation of stock A, B and C
Calculation of standard deviation of portfolio:
Therefore, standard deviation of the portfolio is 2.07%
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Chapter 8 Solutions
EBK CONTEMPORARY FINANCIAL MANAGEMENT
- see itPlease don't answer i posted blurred image mistakely. please comment below i will write values. if you answer with incorrect values i will give unhelpful confirm.arrow_forwardNo use ai. if image is blurr or data is not showing properly then dont answer i will sure deslike. please comment i will write values.arrow_forwardDon't use ai. if image is blurr or data is not showing properly then dont answer i will sure deslike. please comment i will write values.arrow_forward
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- Intermediate Financial Management (MindTap Course...FinanceISBN:9781337395083Author:Eugene F. Brigham, Phillip R. DavesPublisher:Cengage Learning
