Exhibit 7.12
USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S) $\begin{array} { c c } \text { Asset 1 } & \text { Asset 2 } \\\hline E \left( R _ { 1 } \right) = .12 & E \left( R _ { 2 } \right) = .16 \\E \left( \sigma _ { 1 } \right) = .04 & E \left( \sigma _ { 2 } \right) = .06\end{array}$
-Refer to Exhibit 7.12. Calculate the expected returns and expected standard deviations of a two stock portfolio when r_1,2 = .80 and w₁ = .60.

Question

Exhibit 7.12
USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)

\begin{array} { c c } \text { Asset 1 } & \text { Asset 2 } \\\hline E \left( R _ { 1 } \right) = .12 & E \left( R _ { 2 } \right) = .16 \\E \left( \sigma _ { 1 } \right) = .04 & E \left( \sigma _ { 2 } \right) = .06\end{array}

-Refer to Exhibit 7.12. Calculate the expected returns and expected standard deviations of a two stock portfolio when r_1,2 = .80 and w₁ = .60.

Quizplus · Accepted Answer

The Answer of Exhibit 7.12 USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S) $$\begin{array} { c c } \text { Asset 1 } & \text { Asset 2 } \ \hline E \left( R _ { 1 } \right) = .12 & E \left( R _ { 2 } \right) = .16 \ E \left( \sigma _ { 1 } \right) = .04 & E \left( \sigma _ { 2 } \right) = .06 \end{array}$$ -Refer to Exhibit 7.12. Calculate the expected returns and expected standard deviations of a two stock portfolio when r_1,2 = .80 and w₁ = .60. A).144 and .0002 B).144 and .0018 C).136 and .0045 D).136 and .0455 E).136 and .4554

Exhibit 712 USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)

Exhibit 712
USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)