You Are Considering Investing in ZIN Mining Corp

question 60

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You are considering investing in ZIN mining corp.Research into the company suggests that the company will achieve one of three possible returns over the next 12 months.The possible returns along with the probability of each are listed in the following table.
a.What is the expected return of ZIN?
b.What is the standard deviation of returns of ZIN?
You also consider the stock WMC,which has an expected return of 15% and a standard deviation of 4%.If you create a portfolio with 60% weight on ZIN and 40% WMC and the correlation coefficient is 0.8,then:
c.What is the expected return of this portfolio?
d.What is the risk of the portfolio?

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Definitions:

Hypothalamus

A region of the brain that regulates various autonomic nervous system functions, including temperature control, thirst, hunger, sleep, mood, and sexual desire.

Ventromedial

Referring to a position towards the bottom and middle of a structure or an organ, often used in neuroscience to describe a part of the brain.

Lateral

Pertaining to the side; often used to describe structures that are situated on, toward, or relating to the side of an organ or body.

Lesioning

Lesioning is a technique used in neuroscience and research to study brain functions by selectively damaging specific areas and observing the effects.