Two common stocks, Consolidated Edison and Apple, have the following expected return and standard deviation of return

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Two common stocks, Consolidated Edison and Apple, have the following expected return and standard deviation of return over the next year:

Additionally, assume that the correlation coefficient of returns on the two securities is þ0.50. For a portfolio consisting of 75 percent of the funds invested in Consolidated Edison and the remainder in Apple, determine the

a. Expected rate of return on the portfolio

b. Standard deviation of the rate of returnP=74

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