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12. You have $8600 to invest. You decide to invest $17,000 in Google and short sell $8400 worth of Yahoo! Googles expected return is 14%

12. You have $8600 to invest. You decide to invest $17,000 in Google and short sell $8400 worth of Yahoo! Googles expected return is 14% with a volatility of 26% and Yahoo!s expected return is 12% with a volatility of 26%. The stocks have a correlation of 0.92. What is the expected return and volatility of the portfolio?

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