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If the two securities in the portfolio (A & B) have a 0.50% (50 percent)...

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Finance

  1. If the two securities in the portfolio (A & B) have a 0.50% (50 percent) correlation coefficient, then what is the expected standard deviation of an equal weighted portfolio equal to?

  1. If the correlation of returns between the two securities (A & B) is +0.50, then the expected variance of a 40%/60% weighted portfolio is equal to?

  1. If the correlation of returns between the two securities (A & B) is -0.50, then the expected standard deviation of a 40%/60% weighted portfolio is equal to?

  1. What is the expected return of the 40%/60% weighted portfolio cited above?

  1. What is the Beta of the portfolio cited above?

  1. How does the expected risk of this 40%/60% weighted portfolio compare to the risk of the market?image
Security Portfolio Weight Security Expected Annual Return 20% 15% Expected Standard Deviation 25% 15% Expected Annual Return 20% 15% Security Beta Expected Standard Deviation 25% 15% A . 40% 1.25 60% 0.8333 Poro

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