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Use the following information to calculate the expected return and standard deviation of a portfolio that is 50% invested in Roses Inc., and 50% invested
Use the following information to calculate the expected return and standard deviation of a portfolio that is 50% invested in Roses Inc., and 50% invested in Tulip Co.
| Roses Inc. | Tulip Co. | |||
Expected return, E( R ) | 14% | 10% | |||
Standard deviation, | 42% | 31% | |||
Correlation | 0.1 |
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