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Question 3: a. You have constructed a portfolio consisting of 60 percent Stock A and 40 percent Stock B. Stock A has expected return of

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Question 3: a. You have constructed a portfolio consisting of 60 percent Stock A and 40 percent Stock B. Stock A has expected return of 12 percent and standard deviation of 17 percent. Stock B has expected return of 7 percent and standard deviation of 10 percent. The correlation between the returns of these stocks is 0.6. Compute the expected return and standard deviation of your portfolio returns. (7 pts)

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