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In: Economics

Scenario 5 A company has a portfolio of investments in stocks and in bonds. The total...

Scenario 5

A company has a portfolio of investments in stocks and in bonds. The total investment is $8 million of which $2 million is invested in stocks. (Go to four decimals as needed.)

Stocks

Bonds

Portfolio Weight

a

b

Expected/Mean Return

9.25%

6.55%

Variance

328.1875

61.9475

Covariance

-135.3375

What is the portfolio weight for the bonds?                                                

Question 22

Refer to Scenario 5.

What is the expected portfolio return? Calculate as a percentage.

Question 23

Refer to Scenario 5.

What is the variance of the portfolio return? Calculate as a percentage.

Question 24

Refer to Scenario 5.

What is the standard deviation of the portfolio return? Calculate as a percentage.

Solutions

Expert Solution

complete answer is given in picture. Give it a thumbs up Thank you

Rahul Sunny answered 2 years ago
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