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collinfluegge collinfluegge
wrote...
Posts: 333
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6 years ago
A portfolio expected return E(Rp) of 3 stocks with the quantities w1 = .40, w2 = .50, w3 = .10, E(R1) = .10, E(R2) = .15, and E(R3) = .02 is equal to 0.117.
  Indicate whether the statement is true or false

Q. 2

A portfolio return, Rp, of two stocks with individual returns, R1 and R2, is, in general, given by Rp = R1 + R2.
  Indicate whether the statement is true or false

Q. 3

The expected return of a two-asset portfolio is equal to the product of the weight assigned to the first asset and the expected return of the first asset plus the product of the weight assigned to the second asset and the expected return of the second asset.
  Indicate whether the statement is true or false

Q. 4

The expected return of a portfolio of two investments will be equal to the sum of the expected returns of the two investments plus twice the covariance between the investments.
  Indicate whether the statement is true or false

Q. 5

One of the ways in which financial analysts lower the risk that is associated with the stock market is through diversification.
  Indicate whether the statement is true or false

Q. 6

The ____________________ and the ____________________ both measure the relationship between two random variables X and Y.
 Fill in the blank(s) with correct word
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Replies
wrote...
6 years ago
Ans. #1

T

Ans. #2

F

Ans. #3

T

Ans. #4

F

Ans. #5

T

Ans. #6

covariance; correlation
correlation; covariance
collinfluegge Author
wrote...
6 years ago
What an excellent community, thanks for answering
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