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The tangency portfolio is 60% C and 40% D. The expected yearly returns are 4% and 6% for assets C and D. The standard deviations

The tangency portfolio is 60% C and 40% D. The expected yearly returns are 4% and 6% for assets C and D. The standard deviations of the yearly returns are 10% and 18% for C and D and the correlation between the returns on C and D is 0.5. The risk-free yearly rate is 1.2%.

(a) What is the expected yearly return on the tangency portfolio?

(b) What is the standard deviation of the yearly return on the tangency portfolio?

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