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Total 3 Points Suppose you start a hedge fund with $40,000 and invest in two stocks. Support you short $40,000 worth of stock A and

Total 3 Points Suppose you start a hedge fund with $40,000 and invest in two stocks. Support you short $40,000 worth of stock A and invest $80,000 in stock B using the proceeds from shorting and your funds. Assume that the correlation between the two stocks is 0.65. Compute the expected return and volatility of the portfolio given the following information

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