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An investor invests 20% of his wealth in a risky asset with an expected return of 18% and a variance of return of 0.09. The
An investor invests 20% of his wealth in a risky asset with an expected return of 18% and a variance of return of 0.09. The remaining 80% of his wealth is invested in a risk-free asset with a rate of return of 5%. What are the expected return and standard deviation of return on his portfolio?
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