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Richard Has Two Investment Opportunities

Question 64

Multiple Choice

Richard has two investment opportunities.He can invest in The Sunglasses Company or The Umbrella Company.If he diversifies his investment by putting 50% of his money into each company,what is the expected return and standard deviation of his portfolio? Richard has two investment opportunities.He can invest in The Sunglasses Company or The Umbrella Company.If he diversifies his investment by putting 50% of his money into each company,what is the expected return and standard deviation of his portfolio?   A) The expected return for the portfolio is 12.50% and the standard deviation 0.00%. B) The expected return for the portfolio is 25.00% and the standard deviation 0.00%. C) The expected return for the portfolio is 12.50% and the standard deviation 12.50%. D) The expected return for the portfolio is 25.00% and the standard deviation 25.00%.


A) The expected return for the portfolio is 12.50% and the standard deviation 0.00%.
B) The expected return for the portfolio is 25.00% and the standard deviation 0.00%.
C) The expected return for the portfolio is 12.50% and the standard deviation 12.50%.
D) The expected return for the portfolio is 25.00% and the standard deviation 25.00%.

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