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1. The expected return on a stock is 18% and the standard deviation is 22%. The expected return on a bond is 8% and the
1. The expected return on a stock is 18% and the standard deviation is 22%. The expected return on a bond is 8% and the standard deviation is 10%. A portfolio is formed with 60% invested in the stock and 40% invested in the bond. If the correlation between stock and bond returns is 0.20, what is the expected return and standard deviation of the portfolio?
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