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Problem 13 Intro Stock 1 has an expected return of 7% and a standard deviation of 38%. Stock 2 has an expected return of 16%

Problem 13

Intro

Stock 1 has an expected return of 7% and a standard deviation of 38%. Stock 2 has an expected return of 16% and a standard deviation of 16%. Their correlation is -0.1.

You invest 30% in stock 1 and 70% in stock 2.

Attempt 1/10 for 10 pts.

Part 1

What is the standard deviation of the portfolio?

Attempt 1/10 for 10 pts.

Part 2

What is the expected return of the portfolio?

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