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( a ) Given the following portfolio of Marie Company which has investments in POT and DOT. The characteristics of POT and DOT are stated

(a) Given the following portfolio of Marie Company which has investments in POT and DOT. The
characteristics of POT and DOT are stated in the following table. The portfolio of Marie Company is
comprised of 50% investment in POT and 50% investment in DOT. Assume zero correlation between
returns from the two investments.
(i) Calculate the expected return for this two-asset portfolio.
(ii) What can you say about the return you have calculated in (i)?
(iii) Calculate standard deviation of the portfolio.
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