Your client has $104,000 invested in stock A. She would like to build a two-stock portfolio by investing another $104,00

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Your client has $104,000 invested in stock A. She would like to build a two-stock portfolio by investing another $104,00

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Your Client Has 104 000 Invested In Stock A She Would Like To Build A Two Stock Portfolio By Investing Another 104 00 1
Your Client Has 104 000 Invested In Stock A She Would Like To Build A Two Stock Portfolio By Investing Another 104 00 1 (59.26 KiB) Viewed 12 times
Your client has $104,000 invested in stock A. She would like to build a two-stock portfolio by investing another $104,000 in either stock B or C. She wants a portfolio with an expected return of at least 15.0% and as low a risk as possible, but the standard deviation must be no more than 40%. What do you advise her to do, and what will be the portfolio expected return and standard deviation? A B C Expected Return 17% 13% 13% Standard Deviation 49% 38% 38% The expected return of the portfolio with stock B is The expected return of the portfolio with stock C is The standard deviation of the portfolio with stock B is The standard deviation of the portfolio with stock C is (Select from the drop-down menu.) You would advise your client to choose Correlation with A 1.00 0.12 0.34 %. (Round to one decimal place.) %. (Round to one decimal place.) %. (Round to one decimal place.) %. (Round to one decimal place.) because it will produce the portfolio with the lower standard deviation.
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