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a. If Mary invests half her money in each of the two common stocks, what is the portfolio's expected rate in return and standarion in
a. If Mary invests half her money in each of the two common stocks, what is the portfolio's expected rate in return and standarion in b. Answer part a where the correlation between the two common stock investments is equal to zero. c. Answer part a where the correlation between the two common stock investments is equal to +1. d. Answer part a where the correlation between the two common stock investments is equal to 1. e. Using your responses to questions ad, describe the relationship between the correlation and the risk and return of the portfolio. \begin{tabular}{lcc} & Expected Return & Standard Deviation \\ Firm A's common stock & 0.16 & 0.18 \\ Firm B's common stock & 0.18 & 0.26 \\ Correlation coefficient & 0.50 & \\ \hline \end{tabular}
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