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Suppose you form a portfolio that consists of 60 percent Investment ABC and 40 percent Investment RST. Compute the expected return and standard deviation of

Suppose you form a portfolio that consists of 60 percent Investment ABC and

40 percent Investment RST. Compute the expected return and standard deviation of the

portfolio.

Probability ABCr RSTr

0.1 22% -2%

0.6 12% 12%

0.3 2% 30

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