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The expected return on Big Time Toys is 11% and its standard deviation is 21.6%. The expected return on Chemical Industries is 13% and its
The expected return on Big Time Toys is 11% and its standard deviation is 21.6%. The expected return on Chemical Industries is 13% and its standard deviation is 27.4%. a. Suppose the correlation coefficient for the two stocks' returns is 0.32. What are the expected return and standard deviation of a portfolio with 65% invested in Big Time Toys and the rest in Chemical Industries?
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