StockPercentage of PortfolioExpected ReturnStandard DeviationArtemis Inc.20%6.00%29.00%Babish & Co.30%14.00%33.00%Cornell Industries35%11.00%36.00%Danforth Motors15%3.00%38.00%What is the expected return on Andre'sportfolio?7.28%9.70%13.10%14.55%Suppose each stock in Andre's portfolio has a correlation coefficient of 0.4 (p = 0.4) with each of the other stocks. If the weighted average of the riskof the individual securities (as measured by their standard deviations) included in the partially diversified four-stock portfolio is 34%, the portfolio'sstandard deviation (op) most likely is34%.

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Description: StockPercentage of PortfolioExpected ReturnStandard DeviationArtemis Inc.20%6.00%29.00%Babish & Co.30%14.00%33.00%Cornell Industries35%11.00%36.00%Danforth Motors15%3.00%38.00%What is the expected return on Andre'sportfolio?7.28%9.70%13.10%14.55%Sup

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Stock Percentage of Portfolio Expected Return Standard Deviation Artemis Inc. 20% 6.00% 29.00% Babish & Co. 30% 14.00% 33.00% Cornell Industries 35% 11.00% 36.00% Danforth Motors 15% 3.00% 38.00% Vhat is the expected return on Andre's stock portfolio? 7.28% 9.70% O 13.10% O 14.55%

Stock Percentage of Portfolio Expected Return Standard Deviation Artemis Inc. 20% 6.00% 29.00% Babish & Co. 30% 14.00% 33.00% Cornell Industries 35% 11.00% 36.00% Danforth Motors 15% 3.00% 38.00% Vhat is the expected return on Andre's stock portfolio? 7.28% 9.70% O 13.10% O 14.55%

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter8: Analysis Of Risk And Return

Section: Chapter Questions

Problem 20P

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