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The following table shows the expected return and standard deviation of stocks and bond B, if the correlation coefficient between the securities' returns is 0.26,
The following table shows the expected return and standard deviation of stocks and bond B, if the correlation coefficient between the securities' returns is 0.26, and the risk free rate of return is 4%. Expected return Standard deviation Stocks 19% 36% Bond B 13% 21% What is the expected return of the portfolio? Qa. 14.04% O b. 14.14% O c. 16% O d. 15.14%
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