Use the following information to calculate the expected return and standard deviation of a portfolio that is 30 percent invested in 3 Doors, Incorporated, and 70 percent invested in Down Company: Note: Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places. Expected return, E(R) Standard deviation, o Correlation Expected return Standard deviation 3 Doors, Incorporated 13% 43 0.28 % % Down Company 12% 45

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Use the following information to calculate the expected return and standard deviation of a portfolio that is 30 percent invested in 3
Doors, Incorporated, and 70 percent invested in Down Company:
Note: Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.
Expected return, E(R)
Standard deviation, o
Correlation
Expected return
Standard deviation
3 Doors,
Incorporated
13%
43
Y
0.28
%
Down
Company
12%
45
Transcribed Image Text:Use the following information to calculate the expected return and standard deviation of a portfolio that is 30 percent invested in 3 Doors, Incorporated, and 70 percent invested in Down Company: Note: Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places. Expected return, E(R) Standard deviation, o Correlation Expected return Standard deviation 3 Doors, Incorporated 13% 43 Y 0.28 % Down Company 12% 45
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