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Suppose Janet smith holds 100 shares of macrosoft stock and 100 shares of Domestik inc. Macrosoft currently sells for $80/share while Domestic sells for $40/share.
Suppose Janet smith holds 100 shares of macrosoft stock and 100 shares of Domestik inc. Macrosoft currently sells for $80/share while Domestic sells for $40/share. The Expected return of Macrosoft is 15%, and Domestik is 20% respectively. Standard Deviation for Macrosoft is 8%, and Domestic is 20%. Assume the correlation between the two stocks is 0.38.
What is the expected Return & Standard Deviation of her portolio? (Show all work)
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