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Suppose you have $15,000 to invest and you have purchased the following securities. Stock A Stock B $ Amount $6,000 $9,000 Mean return 20.45% 10.85%

Suppose you have $15,000 to invest and you have purchased the following securities.

Stock A

Stock B

$ Amount

$6,000

$9,000

Mean return

20.45%

10.85%

Standard deviation (sample)

35%

15%

Correlation coefficient

-0.85

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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