Securities A and B have expected returns of 12% and 15%, respectively. If you put 30% of your money in Security A and the remainder in B, what is the portfolio expected return?
A) 13.4%
B) 14.1%
C) 14.6%
D) 15.3%
Correct Answer:
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Q1: The work of Harry Markowitz is based
Q3: Securities A and B have expected returns
Q4: The variance of a two-security portfolio decreases
Q5: A security has a return variance of
Q6: A security has a return variance of
Q7: Covariance is the product of two securities'
A)
Q8: The covariance of a random variable with
Q9: Covariance is _ correlation is _.
A) positive,
Q10: For a six-security portfolio, it is necessary
Q11: COV (A,B) = .335. What is COV
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