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Given the following information on securities E and F, calculate the expected return and standard deviation of returns on the portfolio consisting of 50% invested in E and 50% invested in F.

Security E         Security F

Expected Return                                                                           12%                 5%

Standard Deviation of Returns                                                       10%                20%

Correlation coefficient of returns                                                               –0.80

Macroeconomics, Economics

  • Category:- Macroeconomics
  • Reference No.:- M92311662

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