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A stock fund has an expected return of 15% and a standard deviation of 25% and a bond fund has an expected return of 10%
A stock fund has an expected return of 15% and a standard deviation of 25% and a bond fund has an expected return of 10% and a standard deviation of 10%. The correlation between the two funds is 0.50. What is the (a) expected return and (b) standard deviation of the portfolio with 60% weight in the stock portfolio and 40% weight in the bond portfolio?
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