Ebenezer scrooge has invested 60 of his money in share a, Ask an Expert

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Ebenezer Scrooge has invested 60% of his money in share A and the remainder (40%) in share B. He assesses their prospects as follows:

(a) What are the expected return and standard deviation of returns on his portfolio?

(b) How would your answer change if the correlation coefficient were 0 or -0.5?

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