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Expected return Standard deviation of return Covariance of stocks return with the return on the market portfolio Stock A 15% 15% 0.0288 Stock B 20%

Expected return Standard deviation of return Covariance of stocks return with the return on the market portfolio
Stock A 15% 15% 0.0288
Stock B 20% 25% 0.0432

Correlation coefficient between returns of Stock A and Stock B 0.5
Expected return of the market portfolio 10%
Standard deviation of the market portfolio 12%
Risk-free rate 5%

Instead of investing in Stock A and Stock B, now you decide to invest your money in the market portfolio and risk-free assets. Suppose you invest 40% of your money in risk-free assets, and the rest 60% in the market portfolio. What is the expected return and standard deviation of your portfolio?

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