Calculation of portfolio return and variance

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Calculation of portfolio return, variance and standard deviation.

Your Uncle has come back to you and agreed that the stock you have singled out as a reasonable bet. What he has done as a result is transfer all of his $600,000 of share portfolio worth equally into those 10 stocks.

Has he done the right thing?

Use the Solver function in Excel to suggest different combinations of equity that will either provide the same return for less risk, or a higher return for the same risk.

Which option would you advise he take?

Reference no: EM1316591

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