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Using the formulas for the expected return and the standard deviation of two-stock portfolio, complete the following table if securities A and B are: (i)

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Using the formulas for the expected return and the standard deviation of two-stock portfolio, complete the following table if securities A and B are: (i) perfectly positively correlated, (ii) uncorrelated and (iii) perfectly negatively correlated.* Assume that E(rA)=20%,A=20%,E(rB)=40%,B=30%. Draw the portfolio opportunity set in each of the three cases

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