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Asset 1 has a standard deviation of 0 . 1 0 and an expected return of 7 % . Asset 2 has a standard deviation

Asset

1

has a standard deviation of

0.10

and an expected return of

7 % .

Asset

2

has a standard deviation of

0.16

and an expected return of

11 % .

The covariance between them is

0.0 .

Compute the expected return and standard deviation of a portfolio consisting of

75 %

asset

1

and

25 %

asset

2 .

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