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You have $9,500 to invest. You decide to invest $20,000 in Google and short sell $10,500worth of Yahoo! Google's expected return is 13 % with

You have $9,500 to invest. You decide to invest $20,000 in Google and short sell $10,500worth of Yahoo! Google's expected return is 13 % with a volatility of 35 % and Yahoo!'s expected return is 13 % with a volatility of 28 % The stocks have a correlation of 0.880.

What is the expected return?

What is the volatility of the portfolio?

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