What is the expected return of a portfolio of two risky assets if the expected return E(Ri), standard deviation (SDi), covariance (COVij), and asset weight (Wi) are as shown below? Asset (A) E(R₁) = 25% SDA = 18% W₁ = 0.75 COVAB = -0.0009 Select one: C A. 13.65% B. 20.0% C. 18.64% D. 22.5% Asset (B) E(R₂) = 15% SD₁ = 11% WB = 0.25

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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What is the expected return of a portfolio of two risky assets if the expected return
E(Ri), standard deviation (SDi), covariance (COVij), and asset weight (Wi) are as
shown below?
Asset (A)
E(R₂) = 25%
SDA = 18%
WA = 0.75
COVA, B = -0.0009
Select one:
A.
13.65%
B.
20 U ODN
20.0%
C.
18.64%
D.
22.5%
Asset (B)
E(R₂) = 15%
SDB = 11%
WB = 0.25
Transcribed Image Text:What is the expected return of a portfolio of two risky assets if the expected return E(Ri), standard deviation (SDi), covariance (COVij), and asset weight (Wi) are as shown below? Asset (A) E(R₂) = 25% SDA = 18% WA = 0.75 COVA, B = -0.0009 Select one: A. 13.65% B. 20 U ODN 20.0% C. 18.64% D. 22.5% Asset (B) E(R₂) = 15% SDB = 11% WB = 0.25
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