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You have formed a portfolio comprised of Stock A and Stock B. The expected return and standard deviation for Stock A are 2.5% and 12.8%
You have formed a portfolio comprised of Stock A and Stock B. The expected return and standard deviation for Stock A are 2.5% and 12.8% respectively. The expected return and standard deviation for Stock B are 3.3% and 7% respectively. The correlation between the two stocks is 0. Answer the following questions. What is the expected return on a portfolio comprised of 40% Stock A and 60% stock B? A. 2.5% B. none of the other choices is correct. C. 2.98% D. 3.3% What is the standard deviation for the same portfolio (40% in Stock A and 60% in Stock B)? A. 6.2254% B. 9.9% C. 0.3876% D. none of the other choices is correct
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