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You have $10,100 to invest. You decide to invest $20,000 in Google and short sell $9,900 worth of Yahoo! Google's expected return is 16% with
You have $10,100 to invest. You decide to invest $20,000 in Google and short sell $9,900 worth of Yahoo! Google's expected return is 16% with a volatility of 34% and Yahoo!'s expected return is 10% with a volatility of 24%. The stocks have a correlation of 0.88. What is the expected return and volatility of the portfolio? The expected return is %. (Round to one decimal place.) The volatility is%. (Round to one decimal place.)
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