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I ceases to 12trom an increase portfolio risk) An investo por can expected return of 15% and the standard devis decides to cr
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Answer #1

Portfolio's expected return=80%*15%+20%*8%=13.600000%

Standard deviation=sqrt((80%*7%)^2+(20%*3%)^2+2*80%*7%*20%*3%*0.12)=5.703192%

Better off with the portfolio as the portfolio provides higher risk adjusted return

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