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An investor is considering two investments, Investment A and Investment B. Investment A has an expected return of 8% and a standard deviation of 10%,

  1. An investor is considering two investments, Investment A and Investment B. Investment A has an expected return of 8% and a standard deviation of 10%, while Investment B has an expected return of 12% and a standard deviation of 20%. Calculate the expected return and standard deviation of a portfolio consisting of 50% Investment A and 50% Investment B.

  2. An investor has $50,000 to invest in a stock and a bond. The stock is expected to return 12% annually, while the bond is expected to return 7% annually. The investor wants the portfolio to have a standard deviation of 8%. Calculate the amount that should be invested in the stock and the bond to meet the investor's requirement.

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