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1. Compute the portfolio's expected return. 2. Compute the portfolio's standard deviation. Stock A has an expected return of 12.50 percent and a standard deviation

image text in transcribed1. Compute the portfolio's expected return.

2. Compute the portfolio's standard deviation.

Stock A has an expected return of 12.50 percent and a standard deviation of 25.50 percent. Stock B has an expected return of 7.25 percent and a standard deviation of 30.45 percent. The correlation coefficient between Stock A and B is 0.67. A portfolio invested 35 percent in Stock A and 65 percent in Stock B is formed

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