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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
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.: (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.)
3 Doors, Inc. | Down Co. | |||||
Expected return, E(R) | 18 | % | 11 | % | ||
Standard deviation, | 38 | 40 | ||||
Correlation | .23 |
Expected Return =
Standard Deviation =
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