What would be expected return of portfolio consisting

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Reference no: EM131905552

1. Do you think that the financial markets are efficient?

2. Do you know any evidence about market inefficiencies?

3. Toyota Corp.'s stock is $35 per share. Its expected return is 20% and variance is 10%.

Honda Corp.'s stock is $18 per share. Its expected return is 18% and variance is 9%.

Benz Corp.'s stock is $50 per share. Its expected return is 11% and variance 5%.

What would be the expected return of a portfolio consisting of 50% Toyota and 50% Honda?

Reference no: EM131905552

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