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You have $400,000 invested in a well-diversified portfolio. You inherit a house that is presently worth $180,000. Consider the summary measures in the following table:

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You have $400,000 invested in a well-diversified portfolio. You inherit a house that is presently worth $180,000. Consider the summary measures in the following table: The correlation coefficient between your portfolio and the house is 0.42 . a. What is the expected return and the standard deviation for your portfolio comprising your old portfolio and the house (Do not round intermediate calculations. Round your final answers to 2 decimal places.) b. Suppose you decide to sell the house and use the proceeds of $180,000 to buy risk-free T-bills that promise a 13% rate of return. Calculate the expected return and the standard deviation for the resulting portfolio. [Hint. Note that the correlation coefficient between any asset and the risk-free T-bills is zero] (Do not round intermediate colculations. Round your final answers to 2 decimal places.)

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