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uestion 1 nformation relating to stocks in a portfolio is shown below: Correlation with Stock Standard Deviation Stock Weight A B A 0.42 19.65% 1

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uestion 1 nformation relating to stocks in a portfolio is shown below: Correlation with Stock Standard Deviation Stock Weight A B A 0.42 19.65% 1 -0.76 B 0.58 13.43% -0.76 1 'he returns on the stocks are as follows: A B 13.40 17.61 Fequired: ) Determine the portfolio's return (8 -) Find the portfolio's risk (12 20 marks)

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