healthcare finance, financial risk and required return

I have 3 questions and i need your support and feedback  ASAP

1- When considering stand-alone risk, the return distribution of a lessrisky investment is more peaked (“tighter”) than that of a riskierinvestment. What shape would the return distribution have for aninvestment with (a) completely certain returns and (b) completely uncertain returns.

 

2- Assume that two investments are combined in a portfolio.

a. In words, what is the expected rate of return on the portfolio?

b. What condition must be present for the portfolio to have lowerrisk than the weighted average of the two investments?

c. Is it possible for the portfolio to have lower risk than that of eitherinvestment?d. Is it possible for the portfolio to be riskless? If so, what conditionis necessary to create such a portfolio?

 

10.2 Suppose that a person won the Florida lottery and was offered a choiceof two prizes: (1) $500,000 or (2) a coin-toss gamble in which he orshe would get $1 million if a head were flipped and zero for a tail.a. What is the expected dollar return on the gamble?b. Would the person choose the sure $500,000 or the gamble?c. If he or she chooses the sure $500,000, is the person a risk averteror a risk seeker?

10.3 Refer to Table 10.2

.a. Construct an equal-weighted (50/50) portfolio of Investments Band C. What is the expected rate of return and standard deviation of the portfolio. Explain your results.b. Construct an equal-weighted (50/50) portfolio of Investments Band D. What is the expected rate of return and standard deviationof the portfolio. Explain your results.

regarding to the problem i need the answer of 10.3 but referring to the problem 10.2

Regards

 
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