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The expected return and standard deviation of a portfolio that is 50 percent invested in 3 Doors, Incorporated, and 50 percent invested in Down Company.

The expected return and standard deviation of a portfolio that is 50 percent invested in 3 Doors, Incorporated, and 50 percent invested in Down Company. are the following: 3 Doors, Incorporated Down Company Expected return, E(R) 14% 10% Standard deviation, 42 31 What is the standard deviation if the correlation is +1? 0? 1

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