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    Business
  3. Study Set
    Corporate Finance Study Set 5
  4. Exam
    Exam 11: Optimal Portfolio Choice and the Capital Asset Pricing Model
  5. Question
    Use the Table for the Question(s) Below
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Use the Table for the Question(s) Below

Question 17

Question 17

Essay

Use the table for the question(s) below.
Consider the following returns:
Use the table for the question(s) below. Consider the following returns:    -Calculate the variance on a portfolio that is made up of equal investments in Home Depot and IBM stock.
-Calculate the variance on a portfolio that is made up of equal investments in Home Depot and IBM stock.

Correct Answer:

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blured image Var(Rp)= x12Var(R1)+ x22Var(R2)+ 2X1X2Cov(R1,...

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