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2. Portfolio Return An investor considers making a portfolio combining stocks A and B. Stock A return has an average of 10% and the standard

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2. Portfolio Return An investor considers making a portfolio combining stocks A and B. Stock A return has an average of 10% and the standard deviation of 20%. Stock B return has an average of 8% and the standard deviation of 15%. The correlation between the two stocks is 0.3. The investor puts $300 in stock A and $100 in stock B. (a) What is the expected return on the portfolio? (b) What is the variance of the portfolio return? (c) What is the standard deviation of the portfolio return

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