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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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