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Unformatted text preview: 0.5, 0.4, 0.3., 1.4, 1.5) Column2: Calculate Standard Deviation for each portfolio Column3: Calculate Expected return Plot the Expected return of the portfolios (Y Axis) that you just created against the standard deviation (X Axis), i.e. Column 3 against Column 2. 1 1 2 1 , Hint: Remember that the Covariance is just the product of the correlation coefficient and the volatilities of stock 1 and stock 2. Repeat the exercise for Correlation coefficients of 1, 0.5, 0.5 and 1. Everything else should stay the same and plot the graphs in one diagram!...
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This note was uploaded on 10/02/2009 for the course UGBA 08547 taught by Professor Odean during the Fall '09 term at University of California, Berkeley.
 Fall '09
 ODEAN

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