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You own $1,000 to invest in two stocks. You invest $600 in stock 1 whose expected return is 10% and standard deviation is 12%, and
You own $1,000 to invest in two stocks. You invest $600 in stock 1 whose expected return is 10% and standard deviation is 12%, and the remaining in stock 2 whose expected return is 15% and standard deviation is 20%. The correlation coefficient between the two stocks returns is -0.30. What are the expected return and standard deviation of your investment?
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