Find the expected portfolio return and standard deviation if you were to invest 50% of your portfolio in Asset B, 50% in Asset C, with no allocation to Asset A. Compute your answers to the nearest tenth of a basis point. (See attached data file) We know that Asset A: B: C: expected return: 1.16 1.35 1.38 expected standard deviation: 2.88 1.58 2.19
Find the expected portfolio return and standard deviation if you were to invest 50% of your portfolio in Asset B, 50% in Asset C, with no allocation to Asset A. Compute your answers to the nearest tenth of a basis point. (See attached data file)
We know that Asset A: B: C:
expected return: 1.16 1.35 1.38
expected standard deviation: 2.88 1.58 2.19
A portfolio is a group of investments in which an investor has invested funds or money. A portfolio represents all the investments of an investor and the investor can include or exclude investments to and from a portfolio. An investor prefers a portfolio that has maximum returns at the lowest possible risks and the investments in a portfolio are included in such as way that the risk is lowered and returns are increased. Therefore, a portfolio is made in a way that each investment's returns and risks result in an optimum portfolio.
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