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

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

Stock A

Stock B

$ Amount

$9,000

$6,000

Mean return

10.85%

20.45%

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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