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You have $ 10100 to invest. You decide to invest $ 19000 in Google and short sell $ 8900 worth of Yahoo! Google's expected return
You have $ 10100 to invest. You decide to invest $ 19000 in Google and short sell $ 8900 worth of Yahoo! Google's expected return is 15 % with a volatility of 24 % and Yahoo!'s expected return is 10 % with a volatility of 29 %. The stocks have a correlation of 0.88. What is the expected return and volatility of the portfolio?
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