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Business, 23.09.2021 07:00 templetiggerxyz

Ebenezer Scrooge has invested 65% of his money in share A and the remainder in share B. He assesses their prospects as follows: A B
Expected return (%) 15 19
Standard deviation (%) 21 21
Correlation between returns 0.5
a. What are the expected return and standard deviation of returns on his portfolio? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.)
b. How would your answer change if the correlation coefficient were 0 or –0.50? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.)
c. Is Mr. Scrooge’s portfolio better or worse than one invested entirely in share A, or is it not possible to say?
Better
Worse
Not possible to say

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Ebenezer Scrooge has invested 65% of his money in share A and the remainder in share B. He assesses...
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