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You invest 30% of your portfolio in stock A, 50% in stock B and the rest in T-Bill. Expected dollar return on A stock is
You invest 30% of your portfolio in stock A, 50% in stock B and the rest in T-Bill. Expected dollar return on A stock is 15% , 7% on B and 2% on T-Bill. Standard deviation of annualized daily returns are 20% and 10% for stock A and B, respectively. Assume correlation coefficient of 0 between stock A and B. Calculate expected return and standard deviation of your portfolio.
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