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You plan to invest in Stock X, Stock Y, or some combination of the two. The expected return for X is 10% and σx= 5%. The expected return for Y is 12% and σy = 6%. The correlation coefficient, ρxy, is 0.75.

a. Caculate rp and σp for a portfolio p that invests 75% in stock X and 25% in stock Y.

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92772652

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