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You hold an equally-weighted (half invested in each) portfolio consisting of two stocks X and Y, whose returns for the past three years are given

You hold an equally-weighted (half invested in each) portfolio consisting of two stocks X and Y, whose returns for the past three years are given below.

Year Stock X Stock Y

2012 40% -10% 2013 -5 35 2014 15 15

What are the average return and standard deviation of your portfolio XY? (Hint: Think of portfolio return each year.)

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