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Brenda Weiss is a portfolio manager managing a portfolio worth $ 2 , 0 0 0 , 0 0 0 . Being optimistic about the

Brenda Weiss is a portfolio manager managing a portfolio worth $2,000,000. Being optimistic about the prospects of the stock market in the coming months, she has borrowed $500,000 at an interest rate of 8% and has invested this money, together with the 2,000,000 dollars that she has in two portfolios of risky securities. $1,000,000 have been invested in an S&P index fund, and the rest in a small stock fund. Brenda assesses that the expected return on the S&P fund is 13% with a standard deviation of 20% and that the expected return on the small stock fund is 18% with a standard deviation of 25%. She also assesses the correlation coefficient between the S&P fund and the small stock fund to be 0.7. What is the expected return and standard deviation of return on Brenda's portfolio?

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