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please show calculation Suppose the expected returns of stock X and Y are 25% and 35% respectively and the standard deviation of stocks X and

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Suppose the expected returns of stock X and Y are 25% and 35% respectively and the standard deviation of stocks X and Y are 0.3 and 0.4 respectively. If you were to create a portfolio consisting of 20% and 80%Y : i) Calculate the expected return and standard deviation when the correlation coefficient between the tocks is 0.5 ( 4 marks) Ii) Calculate the standard deviation when the correlation coefficient between the stocks is 0.5(3 marks) iii) Demonstrate by appropriate calculations whether or not diversification has been achieved ( 4 marks) iv) Based on parts i) and ii) above how does the correlation coefficient affect the standard deviation of the portfolio (4 marks)

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