Maria has a portfolio consisting of 7 shares of stock A (purchased for $70 per share) and 4 shares of stock B (purchased for $100 per share). Sheassumes the expected rates of returns after 1 year will be 0.02 for stock A and 0.15 for stock B, with variances of 0.04 and 0.18, respectively.The expected rate of return after 1 year for Maria's portfolio is 0.0784intermediate calculations.)0.0784Complete the table below by computing the standard deviation 0.2600 turns after 1 year on the portfolio if the stocks' returns have a coefficient ofcorrelation of -0.4, are uncorrelated, and are perfectly correlatCoefficient of Correlation BetweentheReturns of Stock A and B (p)p= -0.4P = 0.0P = 1.00.0850(Hint: For best results, retain at least four decimal places for any0.1100Standard Deviation orReturn [VV(Rp)]

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Answered: Maria has a portfolio consisting of 7…

Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018

18th Edition

ISBN:9780079039897

Author:Carter

Publisher:Carter

Chapter4: Equations Of Linear Functions

Section4.5: Correlation And Causation

Problem 2AGP

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