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You estimate that the expected return of SPY stock is 11%, and standard deviation of the stock is 17%. The expected return of GLD is
You estimate that the expected return of SPY stock is 11%, and standard deviation of the stock is 17%. The expected return of GLD is -2%and standard deviation of the stock is 8%. If the correlation between SPY returns and GLD returns is -10%, what is the expected return and standard deviation of a portfolio with $4,000 invested in SPY and $6,000 invested in GLD?
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