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10 Marks Question 1 The following data on two stocks: Stock 2 Stock 1 | Standard deviation | 20% Expected return | 10% | 14%

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10 Marks Question 1 The following data on two stocks: Stock 2 Stock 1 | Standard deviation | 20% Expected return | 10% | 14% 40% Required: Calculate the expected return and standard deviation of the ollowing portfolios, where wt represents the fractions invested in stock 1, and w2 represents the fraction invested in stock 2. E(R) Standard Deviation 75% 50% 25% w2 25% 50% 75%

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