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Suppose that 86% of your portfolio is invested in Campbell Soup and the remainder is invested in Boeing. You expect that over the coming year
Suppose that 86% of your portfolio is invested in Campbell Soup and the remainder is invested in Boeing. You expect that over the coming year Campbell Soup will give a return of 3.5% and Boeing, 9.0%. Assume a correlation coefficient of 1. In the past the standard deviation of returns was 22.8% for Campbell and 15.3% for Boeing. What is the expected portfolio return?
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