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1 2 Assume that you invest $ 1 , 0 0 0 in Stock A , $ 5 0 0 in Stock B , and
Assume that you invest $ in Stock A $ in Stock B and $ in a savings account. The savings account gives interest per year. The correlation between the annual returns of the two stocks is The annual return of Stock A has expected value and variance The annual return of Stock B has expected value and variance What are the expected value and variance of the annual return of your total investment?
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