Use the following information to calculate the expected return and standard deviation of a portfolio that is 70 percent invested in 3 Doors, Inc., and 30 percent invested in Down Co.: (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) Expected return, E(R) Standard deviation, σ Correlation 3 Doors, Inc. 17% 47 Expected return % Standard deviation % Down Co. 14% 49 .32
Use the following information to calculate the expected return and standard deviation of a portfolio that is 70 percent invested in 3 Doors, Inc., and 30 percent invested in Down Co.: (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) Expected return, E(R) Standard deviation, σ Correlation 3 Doors, Inc. 17% 47 Expected return % Standard deviation % Down Co. 14% 49 .32
Chapter8: Risk And Rates Of Return
Section: Chapter Questions
Problem 9PROB
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![Use the following information to calculate the expected return and standard deviation of a portfolio that is 70 percent invested in 3
Doors, Inc., and 30 percent invested in Down Co.: (Do not round intermediate calculations. Enter your answers as a percent
rounded to 2 decimal places.)
Expected return, E(R)
Standard deviation, σ
Correlation
3 Doors, Inc.
17%
47
Expected return
%
Standard deviation
%
Down Co.
14%
49
.32](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F7e897df3-9e07-4cc4-8de2-86e3d15b60ff%2Fa2bc2dd0-39fe-4a80-9a95-420b59219153%2Fo7wfa66_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Use the following information to calculate the expected return and standard deviation of a portfolio that is 70 percent invested in 3
Doors, Inc., and 30 percent invested in Down Co.: (Do not round intermediate calculations. Enter your answers as a percent
rounded to 2 decimal places.)
Expected return, E(R)
Standard deviation, σ
Correlation
3 Doors, Inc.
17%
47
Expected return
%
Standard deviation
%
Down Co.
14%
49
.32
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