(Answered) An analysis of the stock market produces the following

Economics

An analysis of the stock market produces the following information about the returns of two stocks.

Stock 1 Stock 2

Expected Returns 16% 18%

Standard Deviations 20 30

Assume that the returns are positively correlated with = 0.90.

Find the mean and standard deviation of the return on a portfolio consisting of an equal investment in each of the two stocks.

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Business Economics, Economics

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