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Consider the following two-security portfolio comprised of: Item Value Weight in Security A 0.56 Expected return on Security A 0.23 Expected return on Security B
Consider the following two-security portfolio comprised of:
Item | Value | |
Weight in Security A | 0.56 | |
Expected return on Security A | 0.23 | |
Expected return on Security B | 0.05 | |
Standard deviation of Security A | 0.16 | |
Standard deviation of Security B | 0.27 | |
Correlation of returns on Security A and Security B | 0.19 |
If the weight of Security B is 1 - weight of security A, the portfolio expected return is equal to ____________. Report your answer to four decimal places (e.g., 1.2345).
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