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Question 3: The securities of firms A and B have the expected return and standard deviation given below; the expected correlation between the two stocks

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Question 3: The securities of firms A and B have the expected return and standard deviation given below; the expected correlation between the two stocks (pm) is 0.1 A 14% 20% B 9% 30% Compute the return and risk of the following portfolio: (3) 100 percent A; (b) 100 percent B; (c) 60 percent A: 40 percent B; and (d) 50 percent A: 50 percent B

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