Portfolio Concepts - Table 11

Portfolio Concepts - Table 11 - Deviation Stocks ( w 1 )...

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Table 11-1 Assumed Expected Returns, Variances, and Correlation Two-Asset Case Asset 1 Asset 2 Large-Cap Stocks Government Bonds Expected return 15% 5% Variance 225 100 Standard deviation 15% 10% Correlation 0.5
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Table 11-2 Relation Between Expected Return and Risk for a Portfolio of Stocks and Bonds Expected Portfolio Portfolio Standard Large-Cap Government Return Variance
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Unformatted text preview: Deviation Stocks ( w 1 ) Bonds ( w 2 ) 5% 100.00 10.00% 0.0 1.0 6% 96.75 9.84% 0.1 0.9 7% 97.00 9.85% 0.2 0.8 8% 100.75 10.04% 0.3 0.7 9% 108.00 10.39% 0.4 0.6 10% 118.75 10.90% 0.5 0.5 11% 133.00 11.53% 0.6 0.4 12% 150.75 12.28% 0.7 0.3 13% 172.00 13.11% 0.8 0.2 14% 196.75 14.03% 0.9 0.1 15% 225.00 15.00% 1.0 0.0...
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This note was uploaded on 01/16/2011 for the course FINACE BA3340 taught by Professor Bend during the Spring '10 term at UT Arlington.

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Portfolio Concepts - Table 11 - Deviation Stocks ( w 1 )...

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