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The expected return of Buffalo is 18.6 percent, and the expected return of Carla is 23.6 percent. Their standard deviations are 12.6 percent and 20.6
The expected return of Buffalo is 18.6 percent, and the expected return of Carla is 23.6 percent. Their standard deviations are 12.6 percent and 20.6 percent, respectively. If a portfolio is composed of 35 percent Buffalo and the remainder Carla, calculate the expected return and the standard deviation of the portfolio, given a correlation coefficient between Buffalo and Carla of 0.35. (Round intermediate calculations to 4 decimal places, e.g. 31.2125 and final answers to 2 decimal places, e.g. 15.25%.) The expected return % Standard deviation of portfolio % Calculate the standard deviation if the correlation coefficient is -0.35. (Do not round intermediate calculations. Round answer to 2 decimal places, e.g. 15.25%.) Standard deviation of portfolio %
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