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Please answer all aspects of the question. You have $9,200 to invest. You decide to invest $22,000 in Google and short sell $12,800 worth of
Please answer all aspects of the question.
You have $9,200 to invest. You decide to invest $22,000 in Google and short sell $12,800 worth of Yahoo! Google's expected return is 15% with a volatility of 28% and Yahoo!'s expected return is 14% with a volatility of 30%. The stocks have a correlation of 0.87. What is the expected return and volatility of the portfolio? The expected return is %. (Round to one decimal place.) The volatility is %. (Round to one decimal place.)Step by Step Solution
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