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Given the following information on securities E and F, calculate the expected return and standard deviation of returns on the portfolio consisting of 50% invested
Given the following information on securities E and F, calculate the expected return and standard deviation of returns on the portfolio consisting of 50% invested in E and 50% invested in F.
Security E Security F
Expected Return 12% 5%
Standard Deviation of Returns 10% 20%
Correlation coefficient of returns 0.80
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