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An investor holding a portfolio consisting of two stocks invests 25% of assets in Stock A and 75% into Stock B. The return R A

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An investor holding a portfolio consisting of two stocks invests 25% of assets in Stock A and 75% into Stock B. The return R A from Stock A has a mean of 4% and a standard deviation of {IA = 8%. Stock B has an expected return E(RB) = 8% with a standard deviation of 03 = 12%. The portfolio return is P = 0.25RA + 0.75553- (a) Compute the expected return on the portfolio. (1)) Compute the standard deviation of the returns on the portfolio assuming that the two stoeks' returns have a correlation of 0.5. ((3) Compute the standard deviation of the returns on the portfolio assuming that the two stoeks' returns are lmeorrelated

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