Business, 10.11.2019 07:31 o11011195

Analyzing portfolio risk and return involve the understanding of expected returns from a portfolio. consider the following case: andre is an amateur investor who holds a small portfolio consisting of only four stocks. the stock holdings in his portfolio are shown in the following table: artemis (20% of portfolio, 6.00% expected return, 34.00% standard deviation) babish & co. (30% of portfolio, 14.00% expected return, 38.00% standard deviation) cornell industries (35% of portfolio, 12.00% expected return, 41.00 standard deviation) danforth motors (15% of portfolio, 3.00% expected return, 43.00% standard deviation) what is the expected return of andre's stock portfolio? a. 15.08, b. 13.57, c. 10.05 d. 7.54 suppose each stock in the preceding portfolio has a correlation coefficient of 0.4 (p=0.4) with each of the other stocks. if the weighted average of the risk (standard deviation) of the individual securities in the partially diversified portfolio of four stocks is 39%, the portfolio's standard deviation most likely is 39%.
a. equal to.
b. more than.
c. less than.

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Analyzing portfolio risk and return involve the understanding of expected returns from a portfolio....

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