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Use the following information to answer the next 2 questions: Asset A Asset B Amount invested 8,000 12,000 Expected Return 12.50% 8.50% Standard Deviation 5.00%

Use the following information to answer the next 2 questions:

Asset A Asset B
Amount invested 8,000 12,000
Expected Return 12.50% 8.50%
Standard Deviation 5.00% 3.80%
Covariance 0.00025

1) The expected return on the portfolio is:

10.50%

8.75%

12.50%

10.10%

11.27%

2) The variance of the returns on the portfolio is:

.3500

0.0026

.0092

.0500

0.0010

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