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Assume the following rerturn and volatility information for two assets A and B

Asset A return 6% Standard deviation 10%

Assets B Return 12% Standard Deviation- 20%

assuming you build an equally weighed portfolio of these two assets, calculate the return and standard deviation of the portfolio for the following

a) A and B are perfertly correlated assets

Financial Management, Finance

  • Category:- Financial Management
  • Reference No.:- M92676447

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