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Question

You have been provided with the following information on two assets

by a client who has informed you that he is considering including the two in a portfolio.
Probability 0.10, 0.20, 0.40, 0.20, 0.10 Asset A Return 6%, 8%, 10%, 12%, 14% Asset B Return 4%, 6%, 8%, 15%, 22%
Additional information
Expected return of both A and B is 10%
ii.The standard deviation of A is 2.3% and of B is 4.8%
REQUIRED Use the coefficient of correlation to advice your client accordingly

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Subject: Business, Finance

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