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The expected return on Big Time Toys is 9 percent and its standard deviation is 14 percent. The expected return on Chemical Industries is 10
The expected return on Big Time Toys is 9 percent and its standard deviation is 14 percent. The expected return on Chemical Industries is 10 percent and its standard deviation is 20 percent. Suppose the correlation coefficient for the two stocks' returns is 0.4. What are the expected and standard deviation of a portfolio with 40 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. E(rp) = Number Std. Dev. = Number
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