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Two-Asset Portfolio

Stock A has an expected return of 13% and a standard deviation of 35%. Stock B has an expected return of 19% and a standard deviation of 60%. The correlation coefficient between Stocks A and B is 0.2. What is the expected return of a portfolio invested 35% in Stock A and 65% in Stock B? Round your answer to two decimal places.

%

What is the standard deviation of a portfolio invested 35% in Stock A and 65% in Stock B? Round your answer to two decimal places.

%

Financial Management, Finance

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