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(b) A portfolio that has weight w in Fairfield Sentry and weight 1 w in the S&P has expected return and standard deviation E[r]=wE[r]+(1-w)E[rsp],

(b) A portfolio that has weight w in Fairfield Sentry and weight 1 w in the S&P has expected return and standard deviation E[r]=wE[r]+(1-w)E[rsp], = w + (1w) sp+2w(1w)ppsSP FS Suppose you are holding an equally weighted portfolio of Fairfield Sentry and S&P, what is the expected return and standard deviation of the return on this portfolio?

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