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5. Two stocks, X and Y, have the following characteristics: E(X) = $50 E(Y) = $100 2x= 9,000 2y= 15,000 xy= 7,500 If the weight

5. Two stocks, X and Y, have the following characteristics: E(X) = $50 E(Y) = $100 2x= 9,000 2y= 15,000 xy= 7,500 If the weight of portfolio assets assigned to investment X is 0.4, compute the: a. Portfolio expected return. b. Portfolio risk. c. Would you invest in stock X or stock Y? Explain.

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