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A and B are negatively correlated stocks with -0.8 correlation coefficient. The expected return of both stocks are given as follows: Weight Expected return (ri)

A and B are negatively correlated stocks with -0.8 correlation coefficient. The expected return of both stocks are given as follows:

Weight Expected return (ri) % Standard Deviation
Stock A 80% 30% 8%
Stock B 20% 26% 5%

Calculate the portfolios expected return (rp)

Select one:

a. 29.2%

b. 19%

c. 5.2%

d. 24%

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