Harry jones has invested onethird of his funds in share 1, Ask an Expert

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Harry Jones has invested one?third of his funds in Share 1 & two?thirds of his funds in Share 2. His assessment of each investment is as follows:

Item Share 1 Share 2
Expected return (%) 15.0 21.0
Standard deviation (%) 18.0 25.0
Correlation between the returns 0.5

(a) What are the expected return & the standard deviation of return on Harry's portfolio?

(b) Recalculate the expected return & the standard deviation where the correlation between the returns is 0 and 1.0, respectively.

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M9994960

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