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What do your new you about ponto rok when combines a portion the best choice O A cantatunna rowerowy oderney Red wwwm O camaranthe sametumwa pole but cargowych de devishe will bewed by the however Contanhamina portato but more agli aeroporto do nebey vesting the propone of the porta standard deviation is owwwww GERID 90% in Firm B's common stock and the correlation coefficient between the two stocks is 0.20, then the expected rate of return in .) - 10% Data table urn in .) return 90% i Standard Deviation 0.11 0.05 Expected Returns Firm A's common stock 0.15 Firm B's common stock 0.11 Correlation coefficient 0.20 (Click on the icon in order to copy its contents into a spreadsheet.) 5.) mn in to % in F S.) assets Print Done ting a ocks ar uso be! the stocure pour oyu ITVICE tocks are negatively correlated rather than positively correlated. Regardless of correlation, risk can also be lowered by investing a the stocks are negatively correlated rather than positively correlated. If correlation of two stocks is the same, risk can also be lowe a. If Mary decides to invest 10% of her money in Firm A's common stock and 90% in Firm B's common stock and the correlation coefficient between the tw The standard deviation in the portfolio is % (Round to two decimal places.) b. If Mary decides to invest 90% of her money Firm A's common stock and 10% in Firm B's common stock and the correlation coefficient between the tw The standard deviation in the portfolio is %. (Round to two decimal places.) c. If Mary decides to invest 10% of her money in Firm A's common stock and 90% in Fim B's common stock and the correlation coefficient between the two The standard deviation in the portfolio is [%. (Round to two decimal places.) of Mary decides to invest 90% of her money in Firm A's common stock and 10% in Firm B's common stock and the correlation coefficient between the two st The standard deviation of the portfolio is % (Round to two decimal places.) d. What does your analysis tell you about portfolio risk when combining risky assets in a portfolio? (Select the best choice below.) O A. You can maintain the same return in a portfolio but lower risk if the stocks are positively correlated rather than negatively correlated. Regardless or OB You can maintain the same return in a portfolio but lower risk more if the stocks are positively correlated rather than negatively correlated. If correlat however will increase return. Muy decides to invest 10% of her money in Fim As common wock and 80% in Firm Becommon stock and the corriolation coeficient between the two stocks as 0.20, then the expected rato al mtum in the portfolio als The standard deviation in the portfolio %. Round to two decimal places D. Mary decides to Irmat 80% of her money in Fim A's common stock and 90% in Fom common stock and the correlation coefficient between the two stocks in 0.30, then the expected rate of return in the portokon The standard deviation in the portfolio in I. (Round to two decimal places c. Mary decides to invest 10% of her money in Fm As common stock and so in Frm By common stock and the cometation coufficient between the two stocks * -0.20, then the expected rate of ratum in the portiola The standard deviation in the portfolo in % (Hound to wo decimal places) Mary decides to invest 0% of her money in Fim As common stock and 10% Fim Becommon stock and the correlation coefficient between the two stocks is - 0.20, then the expected rate of rotun in the potolox The standard deviation of the portfolio is (Round to two decimal places) d. What does your analysis tell you about portfolio no when combining nake in a pontolo? (Select the best choke below) OA You can maintain the same return in a portfolio but lower risk the stocks are positively correlated rather than negatively coated. Regardless or correctionis can also be lowered by investing a higher proportion of however will increase return On You can maintain the came totum in a portfolio but lower risk moro the stocks are positively correlated rather than regevul comulated formulation of the two stocks is the same, nak can also be lowered by Insting standard deviation, this however wil reduceretur OC. You can maintain the same return in a portfolio but lower risk of the stocks are negatively correlated ther than positively correlated. Regardless of correlation, nak can also be towered by investing a higher proportion of however will reduceretum OD. You can maintain the same return in a portfolio but lower risk more if the stocks are negatively cold rather than positively combated. It correlation of two stocks is the same, risk can also be lowered by inngah standard deviation, this however will fact relum mining roky assets in a portfolio and 90% in Fim B's common stock and the correlation coefficient between the two locks is 0.20, then the expected rate of retam in the portfolio [% Round to two decimal placen.) places) ck and 10% in Firm B's common stock and the correlation coefficient between the two stocks is 0.20, then the expected rate of retum in the portfolio 0% (Round to two decimal places) places) k and 90% in Fim B's common stock and the correlation conflict between the two stock in - 020, then the expected rate of ratum in the portello (Round to two decimal places) places) and 10% in Fim. By common stock and the correlation coeffichent between the two stocks is - 0,20, then the expected ratio of rotum in the portfolio is % (Round to bwo decimal places) places) ng risky assets in a portfolio? (Select the best choice below) at the stocks are positively correlated rather than negatively correlated. Regardless & correlation tik can also be lowered by investing a higher proportion of the portfolio in stock with higher standard deviation, the more it the stocks are positively correlated rather than negatively comelted. If conation of the two stocks is the same, isk can also be lowered by investing a higher proportion of the portfolio in stock with lower at the stocks are negatively correlated rather than positively correlated. Regardless of comelation, risk can also be towered by investing a higher proportion of the portfolio in stock with higher standard deviation, this more if the stocks are negatively correlated rather than positively correlated correlation of two stocks is the same risk can also be lowered by investing a higher proportion of the portfolio in stock with lower (Computing the standard deviation for a portfolio of two risky investments) Mary Gulott recently graduated from colege and is evaluating an investment in two companions common stock. She has cole BI f Mary decides to invest 10 percent of her money in Firm A's common stock and 90 percent in Firm's common stock, what is the expected rate of retum and the standard deviation of the portfolio return? b. Mary decides to invest 90 percent of the money in Firm's common stock and 10 percent in Firm B's common stock, what is the expected rate of return and the standard deviation of the portfolio return? c. Recompute your responses to both questions and b, where the correlation between the two firms stock retums is -0.20 d. Summarize what your analysis tells you about portfolio risk when combining risky ansies in a portfolio G a Mary decides to invest 10% of her money in Fim As common stock and 90% in Firm By common stock and the correlation coefficient between the two stocks is 0.20, then the expected rate of ratum in the The standard deviation in the portfolio is % (Round to two decimal places) b. 1 Mary decides to invest 90% of the money in Fm As common stock and 10% in Fire common slock and the correlation coefficient between the two stocks is 0.20, then the expected rate of return in the The standard deviation in the portfolio i % (Round to two decimal places) 6. Mary decides to invest 10% of her money in Fim Als common stock and 90% in Fim By common stock and the correlation coefficient between the two stocks 5-0.20, then the expected rate of return in The standard deviation in the portfolio is % (Round to two decimal places) Mary decides to invest 90% of her money in Firm Ax common stock and 10% in FimB's common stock and the correlation coefficient between the two stocks is - 0.20, then the expected rate of retum in the The standard deviation of the portfolio is Round to two decimal places)

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