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Suppose you have $10,000 to invest and you have purchased the following securities. Stock A Stock B $ Amount $4,000 $6,000 Mean return 19.65% 8.96%

Suppose you have $10,000 to invest and you have purchased the following securities.

Stock A

Stock B

$ Amount

$4,000

$6,000

Mean return

19.65%

8.96%

Standard deviation (sample)

40%

20%

Correlation coefficient

+0.25

Calculate the following statistics: (1/100 of one percent without % sign, e.g. 12.671, if a negative percentage, -9.56):

1) Expected portfolio return: Answer

2) Expected portfolio standard deviation: Answer

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