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Determine the expected rate of return and the standard deviation of a 70/30 portfolio created from the information given below. Then determine and explain the
Determine the expected rate of return and the standard deviation of a 70/30 portfolio created from the information given below. Then determine and explain the impact that the correlation coefficient would be -0.8 instead of 0.2 would have on the portfolio. Expected return on security A .12 (12%) Standard deviation of performance .1 Expected return on security B .twenty (twenty%) Standard deviation in performance .6 Correlation coefficient of value A and B .two
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