Stock A has an expected return of 10% and a standard deviation of 35%. Stock B has

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Stock A has an expected return of 10% and a standard deviation of 35%. Stock B has an expected return of 15% and a standard deviation of 45%. The correlation coefficient between Stock A and B is 0.3. What are the expected return and standard deviation of a portfolio invested 60% in Stock A and 40% in Stock B? (12.0%; 31.5%)

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Financial Management Theory And Practice

ISBN: 9781439078105

13th Edition

Authors: Eugene F. Brigham, Michael C. Ehrhardt

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