1. Anika purchases 100 shares of Tesco at a price of $50 per share and 120 shares of Morrisons at $20 per share. a. Calculate the weights of the portdolio that Anika has invested in. b. Suppose, the returns of Tesco and Morrisons are 15% and 17% respectly.Standard deviation of Tesco and Morrisons are 12% and 14% respectly. The two stocks experience correlation of 0.65. How much the portfolio created rate and risk?

Essentials Of Investments
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Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
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Chapter1: Investments: Background And Issues
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1. Anika purchases 100 shares of Tesco at a price of $50 per share and 120 shares of Morrisons at $20 per share.


a. Calculate the weights of the portdolio that Anika has invested in.

b. Suppose, the returns of Tesco and Morrisons are 15% and 17% respectly.Standard deviation of Tesco and Morrisons are 12% and 14% respectly. The two stocks experience correlation of 0.65. How much the portfolio created rate and risk?

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