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Use the following information to calculate the expected return and standard deviation of a portfolio that is 30 percent invested in 3 Doors, Inc., and

  1. Use the following information to calculate the expected return and standard deviation of a portfolio that is 30 percent invested in 3 Doors, Inc., and 70 percent invested in Down Co.

3 Doors, Inc. Down Co.

Expected return, E(R) 18 % 14 %

Standard deviation, 48 50

Correlation .33

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