Question Amanda Tan cannot decide whether to invest in Stock Hewlett or Stock Packard, or...
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Question Amanda Tan cannot decide whether to invest in Stock Hewlett or Stock Packard, or in a portfolio which is a combination of both stocks. She has approached OSK Securities and the firm has provided her with the following information: Expected return (%) Probability (%) Stock Hewlett Stock Packard 30 13 15 20 14 13 20 15 12 30 16 11 Using these stocks, she has identified two investment portfolio alternatives: Alternative Portfolio 1 100% of Hewlett 2 40% of Hewlett and 60% of Packard a) Calculate the portfolio return and standard deviation for each alternative. b) Based on the findings above, which of the two alternatives would she choose? Explain your
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