C. 1 A: r 12=0.50 B: 120.65 Expected Return, % 26 24 22 20 A B 10 16 14 12 10 8 04 A: 12=0.50 10 12 14 16 18 Risk (Standard deviation).% B: 12 =-0.65/nMean of two portfolios: Standard deviation of two portfolios if -0.50: Standard deviation of two portfolios if -0.65 Choose the correct risk-retum graph. The correct graph Axpected Retur 26 24 22 20 10 B 14 12 B. Graph C A 12-0.50 IR IZ JA JA HR Risk Standard deviation. 0.65 10 12 14 16 18 Risk (Standard deviation).% A: 12=0.50 ■B: 12 =-0.65 Expected Return, % 26 24 22 20 10 16 964 14 121 20 10 +8 6 8948 B A: 12=0.50 10 12 14 16 18 (Standard deviation).% Risk B: r 12 =- -0.65/n2. Problem 6-04 eBook Problem 6-04 You are considering two assets with the following characteristics. E(R1)=0.16 E(01) = 0.07 w₁ = 0.5 E(R2) -0.20 E(02) - 0.18 w2 -0.5 Compute the mean and standard deviation of two portfolios if 1.2 -0.50 and -0.65, respectively. Do not round intermediate calculations. Round your answers for the mean of two portfolios to three decimal places and answers for standard deviations of two portfolios to five decimal places. Mean of two portfolios: Standard deviation of two portfolios if 1,2 -0.50: Standard deviation of two portfolios if 1,2--0.65: Choose the correct risk-return graph. The correct graph is -Select-✔ A. Expected Return % 26 24 22 20 He B 14

Solved: C. 1 A: r 12=0.50 B: 120.65 Expected Return, % 26 24 22 20 A B 10 16 1

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problem 6 04 you are considering two assets with the following charact

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C. 1 A: r 12=0.50 B: 120.65 Expected Return, % 26 24 22 20 A B 10 16 14 12 10 8 04 A: 12=0.50 10 12 14 16 18 Risk (Standard deviation).% B: 12 =-0.65/nMean of two portfolios: Standard deviation of two portfolios if -0.50: Standard deviation of two portfolios if -0.65 Choose the correct risk-retum graph. The correct gra