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BMMF5103 SUGGESTED ANSWERS: PART A Question 1 a. (i). E(r) .05(-.5) + .10(-.15) + .2(.05) + .3(.15) + .2(.25) + .15(.40) .125 12.5% (ii). Var .05(-.50 .125)2 + .1(-.15 — .125)2 + .2(.05 — .125)2

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