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The expected return of Stellar is 14.7 percent, and the expected return of Pearl is 22.7 percent. Their standard deviations are 9.7 percent and 22.7

image text in transcribedThe expected return of Stellar is 14.7 percent, and the expected return of Pearl is 22.7 percent. Their standard deviations are 9.7 percent and 22.7 percent, respectively, and the correlation coefficient between them is zero.

The expected return of Stellar is 14.7 percent, and the expected return of Pearl is 22.7 percent. Their standard deviations are 9.7 percent and 22.7 percent, respectively, and the correlation coefficient between them is zero. What is the expected return and standard deviation of a portfolio composed of 25 percent Stellar and 75 percent Pearl? (Round intermediate calculations to 6 decimal places, e.g. 31.212564 and final answers to 2 decimal places, eg. 15.25%.) The expected return % Standard deviation of portfolio % What is the expected return and standard deviation of a portfolio composed of 75 percent Stellar and 25 percent Pearl? (Round intermediate calculations to 6 decimal places, e.g. 31.212564 and final answers to 2 decimal places, e.g. 15.25%.) The expected return % Standard deviation of portfolio % Would a risk-averse investor hold a portfolio made up of 100 percent of Stellar

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