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Use the following information to answer the following 3 questions. Assuming there are only two stocks in the economy, Stock A and Stock B, the

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Use the following information to answer the following 3 questions. Assuming there are only two stocks in the economy, Stock A and Stock B, the following information is given: The Expected Return is 9% for Stock A and 5% for Stock B The Standard Deviation is 10.85% for Stock A and 3.71% for Stock B The correlation between Stock A and Stock Bis 0.4 The Risk-free rate is 4%. Also assume you will invest 30% of your money into Stock A and 70% into Stock B. Answer the following (NOTEM ROUND ALL ANSWERS TO THE NEAREST TENTH, EXAMPLE:WRITE 3.2 for a Standard Deviation of 3.23%): The Expected Return of the porfolio is %6 The Standard Deviation of the portfolio is % Assume this portfolio is the optimal portfolio, the Beta for Stock A is

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