6. Suppose we obtain the following data in dollar terms:

The correlation coefficient between the two markets is 0.58. Suppose that you invest equally, that is, 50 percent in each of the two markets. Determine the expected return and standard deviation risk of the resulting international port-folio.13 This problem can be solved using the spreadsheet MPTSolver.xls.

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Stock Return Risk Market (Mean) (SD) United States 1.26% per 4.43% month United 1.23% per 5.55% Kingdom month