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(Computing the standard deviation for a portfolio of two risky investments) Mary Guilott recently graduated from Nichols State University and is anxious to begin investing

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(Computing the standard deviation for a portfolio of two risky investments) Mary Guilott recently graduated from Nichols State University and is anxious to begin investing her meager savings as a way of applying what she has learned in business school. Specifically, she is evaluating an investment in a portolio comprised of two firms common stock. She has collected the folowing information about the common stock of Finn A and Firm B a. If Mary invests half her money in each of the two common stocks, what is the portfolio's expected rate of return and standard deviation in portfolio retum? b. Answer part a where the correlation between the two common stock investments is equal to zero. c. Answer part a where the correlation between the two common stock investments is equal to+1 d. Answer part a where the correlation between the two common stock investments is equal to 1 e. Using your responses to questions a d, describe the relationship between the correlation and the risk and return of the portfolio a lf Mary decides to invest 50% of her money in Frm A's common stock and 50% n Firm B's co ron stock and t e co miat on between the two st dee04 expected rate of return in tho portfolio is% (Round to two decimal places ) then the

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