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IBM AMZN E(R ) 0.09 0.13 Standard Deviation 0.12 0.22 Correlation 0.4 Suppose you have the above data on IBM and Amazon, compute the expected

IBM

AMZN

E(R )

0.09

0.13

Standard Deviation

0.12

0.22

Correlation

0.4

Suppose you have the above data on IBM and Amazon, compute the expected return and the standard deviation of an equally weighted portfolio invested in the two securities. Is there a diversification benefit?

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