The Stock Market of Country a Has an Expected Return

question 81

Essay

The stock market of country A has an expected return of 5%, and standard deviation of expected return of 8%. The stock market of country B has an expected return of 15% and standard deviation of expected return of 10%.
Find the expected return of a portfolio with half invested in A and half invested in B.

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Definitions:

Empowerment

The process of providing individuals or groups with the resources, confidence, and skills to increase control over their own lives and influence the decisions that affect them.

Behavioral Models

Theoretical frameworks used for understanding, predicting, and changing human behavior.

Aggressiveness

A behavior characterized by boldness or assertiveness, often with the intention of dominating a situation.

Strategy

A plan of action designed to achieve long-term or overall goals and objectives, often involving decision-making processes.