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Portfolio Theory: Mark Harrywitz proposes to invest in two shares, X and Y. He expects a return of 12% from X and 8 % from
Portfolio Theory: Mark Harrywitz proposes to invest in two shares, X and Y. He expects a return of 12% from X and 8 % from Y. The standard deviation of returns are 8% for X and 5% for Y. The correlation coefficient between the returns is .2.Part a is the only part required and graded.
a. Compute the expected return and standard deviation of the following portfolios:
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