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Stock A has an expected return of 15% and a standard deviation of 11%. Stock B has an expected return of 7% and a standard
Stock A has an expected return of 15% and a standard deviation of 11%. Stock B has an expected return of 7% and a standard deviation of 6%. The correlation between the returns of stock A and B is 0.30. If we combined stock A and B into a portfolio where the weight of stock A is 40% and the weight of stock B is 60%, what would be the expected return and standard deviation of this portfolio?
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