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which formulas to use for this question+solution Question 2.8 Common stocks D. and E. have the following characteristics with respect to expected return, standard deviation,

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which formulas to use for this question+solution

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Question 2.8 Common stocks D. and E. have the following characteristics with respect to expected return, standard deviation, and correlation between them: Return Standard Correlation deviation Common stock D 0.08 0.02 between D and E 0.40 Common stock E 0.15 0.16 between D and F 0.60 What is the expected return and standard deviation of a portfolio composed of 40 percent of funds invested in stock D. and 60 percent of funds in stock F

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