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Ms. Yellen runs a portfolio consisting of two risky assets: stock (S) and gold (G). 90% of her portfolio holding is in S and 10%

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Ms. Yellen runs a portfolio consisting of two risky assets: stock (S) and gold (G). 90% of her portfolio holding is in S and 10% is in G. Information on the two risky assets are given below Assume that the correlation between the two assets is 0. (a) Compute the expected rate of return and the standard deviation of Ms. Yellen's portfolio. b) Compare your results of (a) to S and explain why Ms. Yellen is able to have a lower risk than S alone

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