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You are considering two risky assets to form your portfolio. The expected rate of returns, standard deviations and correlation between two assets are given below:

You are considering two risky assets to form your portfolio. The expected rate of returns, standard deviations and correlation between two assets are given below:

E(R-Asset A)= 7%, Standard Deviation- Asset A= 12%;

E(R-Asset B)= 12%, Standard Deviation- Asset B= 18%;

Correlation between two assets is 0.3.

Please answer the following questions:

(1) If you invest $4,800 in Asset A and $5,200 in Asset B, what is the weight in Asset A?(Please input your answer to the second decimal, e.g. 0.00)

(2) If you invest $4,800 in Asset A and $5,200 in Asset B, what is the weight in Asset B?(Please input your answer to the second decimal, e.g. 0.00)

(3) If you invest $4,800 in Asset A and $5,200 in Asset B, what is the expected rate of return for your portfolio?(Please round your answer to the fourth decimal, e.g. 0.0000)

(4) If you invest $4,800 in Asset A and $5,200 in Asset B, what is the standard deviation for your portfolio?

(Please round your answer to the fourth decimal, e.g. 0.0000)

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