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    Corporate Finance Study Set 3
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    Exam 11: Optimal Portfolio Choice and the Capital Asset Pricing Model
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    Use the Table for the Question(s)below
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Use the Table for the Question(s)below

Question 31

Question 31

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Use the table for the question(s)below.
Consider the following expected returns,volatilities,and correlations: Use the table for the question(s)below. Consider the following expected returns,volatilities,and correlations:   -Consider a portfolio consisting of only Microsoft and Wal-Mart stock.Calculate the volatility of such a portfolio when the weight on Microsoft stock is 0%,25%,50%,75%,and 100%
-Consider a portfolio consisting of only Microsoft and Wal-Mart stock.Calculate the volatility of such a portfolio when the weight on Microsoft stock is 0%,25%,50%,75%,and 100%

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Var(Rp)= x12Var(...

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