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Portfolio Returns and Portfolio Risk

8–1. (Computing the expected rate of return) (Related to Checkpoint 8.1 on page 225) Two recent graduates from business school (Mark Van and Sheila Epps) decided to set up an investment company to acquire home mortgages that are in default but that they hope to restructure in ways that make it possible for the homeowner to continue making payments and thus retain ownership of their home. To evaluate ...

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