Which of the following will be a part of Efficient Frontier? A B C D E F Return (%) 8 8 12 4 9 8 Risk (Standard deviation) 4 5 12 4 5 6 Plot them in Risk return graph. Assuming correlation between A and C as 0.3, find the risk and return of the portfolio with 75 % proportion in A and 25 % in C, also interpret the result of such diversification.

Which of the following will be a part of Efficient Frontier? A B C D E F Return (%) 8 8 12 4 9 8 Risk (Standard deviation) 4 5 12 4 5 6 Plot them in Risk return graph. Assuming correlation between A and C as 0.3, find the risk and return of the portfolio with 75 % proportion in A and 25 % in C, also interpret the result of such diversification.

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter8: Analysis Of Risk And Return

Section: Chapter Questions

Problem 6P

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