g. ABC Bank has two loans of $20,000 each, with the following characteristics: Loan A has an expected return of 10 perce
Posted: Sun Apr 10, 2022 8:42 am
g. ABC Bank has two loans of $20,000 each, with the following characteristics: Loan A has an expected return of 10 percent and a standard deviation of returns of 10 percent. The expected return and standard deviation of returns for loan B are 12 percent and 20 percent, respectively. What is the expected return of this portfolio?