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The expected return on Big Time Toys is 6 percent and its standard deviation is 25 percent. The expected return on Chemical Industries is -5
The expected return on Big Time Toys is 6 percent and its standard deviation is 25 percent. The expected return on Chemical Industries is -5 percent and its standard deviation is 20 percent. Suppose the correlation coefficient for the two stocks' returns is 0.8. What are the expected and standard deviation of a portfolio with 20 percent invested in Big Time Toys and the rest in Chemical Industries?
Enter your answers as percentages rounded to 2 decimal places. Do not include the percentage sign in your answers.
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