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Looking for a solution to this: Asset A has an expected return of 11.2 percent and a standard deviation of 44.2 percent per year. Asset B has an expected return of 16.2 percent and a standard deviation of 63.2 percent per year.

Part a. What is the expected return on a portfolio composed of 28 percent of Asset A and 72 percent of Asset B?

Part b. If the correlation between the returns of Asset A and Asset B is .23, what is the standard deviation of the portfolio described in part (a)?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92697233

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