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The beta of Asset A is 1 . 2 5 and that of Asset B is 0 . 8 . A trader forms a portfolio

The beta of Asset A is 1.25 and that of Asset B is 0.8. A trader forms a portfolio by investing 40% of his Wealth in Assel A and 60% in Asset B. The variance of Asset B is 64% of the variance of Asset A, and the correlation between the two assets is 0.80. If the variance of the portfolio is 0,4360, what are the variances of returns of the two assets. If the correlation of Asset A with the market portfolio is 0.75, what is the correlation of Asset B with the market portfolio?

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