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Given: E ( R 1 ) = 0 . 1 2 E ( R 2 ) = 0 . 1 6 E ( 1 )

Given:
E(R1)=0.12
E(R2)=0.16
E(1)=0.01
E(2)=0.05
for the expected returns of a two-stock portfolio to three decimal places and answers for expected standard deviations of a two-stock portfolio to four decimal places.
a.r1,2=1.00
Expected return of a two-stock portfolio:
Expected standard deviation of a two-stock portfolio:
b.r1,2=0.75
Expected return of a two-stock portfolio:
Expected standard deviation of a two-stock portfolio:
c.r1,2=0.25
Expected return of a two-stock portfolio:
Expected standard deviation of a two-stock portfolio:
d.r1,2=0.00
Expected return of a two-stock portfolio:
Expected standard deviation of a two-stock portfolio:
e.r1,2=-0,25
Expected return of a two-stock portfolio:
Expected standard deviation of a two-stock portfolio:
f.r1,2=-0,75
Expected return of a two-stock portfolio:
Expected standard deviation of a two-stock portfolio:
g.r1,2=-1.00
Expected return of a two-stock portfolio:
Expected standard deviation of a two-stock portfolio:
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