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Expected Return Standard deviation Stock A 13% 5% Stock B 16% 6.50% Correlation 0.8 0.8 If you hold equal weights of both stocks in your

Expected Return Standard deviation
Stock A 13% 5%
Stock B 16% 6.50%
Correlation 0.8 0.8

If you hold equal weights of both stocks in your portfolio:

1- Calculate the portfolio return. (Show your work)

2- Calculate the portfolio std. (Show your work)

3- Calculate Coefficient of Variation of Stock A. (Show your work)

4- Calculate Coefficient of Variation of Stock B. (Show your work)

5- If the correlation is -0.8, Calculate the portfolio expected return and standard deviation. (Show your work)

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