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8. The following data were obtained from international market in dollar terms: 4.43 Shares market Return (%) Standard Deviation (%) United States 1.26 United Kingdom

8. The following data were obtained from international market in dollar terms: 4.43 Shares market Return (%) Standard Deviation (%) United States 1.26 United Kingdom 1.23 5.55 The correlation between the two markets is 0.58. Suppose that you invest equally 50 percent each, in the two markets. Determine the expected return and standard deviation of the international portfolio. (9 marks)

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