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Question
Use the following information for 14-15.
Assume that you have a choice of two assets, A and B, and a portfolio of an equal share of the two assets. Assume also that the assets have the following statistics:
Table 10.1:
| Return | Variance | Covariance | |
| Asset A | 20 % | 10 | -0.01 |
| Asset B | 16 % | 0.02 |
See Table 10.1. If your portfolio includes a combination of 20% Asset A and 80% Asset B, then your expected return is:
a. 16.8 %
b. 18 %
c. 19.2 %
d. 24 %
Answer
This answer is hidden. It contains 1 characters.
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