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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 schoof Specifically, she is evaluating an investment in a portiolio comprised of two firms' common stock. She has collected the following information about the common stock of Firm A and Firm B: a. If Mary invests halr her money in each of the two common stocks, what is the portfolio's expcted rate of return and standard deviation in portiolio return? b. Answer part a where the correlation belween the two common stock investments is equal to zero. c. Answer part a where the correlation befween the fwo common stock investments is equal to +1 d. Answer part a where the correlation between the fwo common stock investments is equal to -1 e. Using your responses to questions a-d, describe the relationship between the correlation and the ris k and return of the portfolio a. If Mary decides to invest 50% of her money in Firm A's common stock and 50% in Firm B's common stock and the correlation betwoen the two stocks is 0.40 , then the expected rate of relurn in the portfolio is i6. (Round to two decirnal places) Data table (Click on the icon in order to copy its contents into a spreadsheet)

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