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Unformatted text preview: first stock has a rate of return of 40%, but you can only purchase $200 worth of this stock. The second stock has a return of 20%, and you can purchase $300 worth of this stock. The third stock has a return of 10%, and you can purchase $500 worth of this stock. What is the rate of return of your portfolio? Example 4: Beta If the variance of returns of the market is 400 and the beta of a portfolio is 1.5, and the correlation coefficient between the market and the portfolio is 0.8, calculate the standard deviation of the portfolio:...
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This document was uploaded on 11/02/2011 for the course FIN 301 at Miami University.
- Fall '08