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You wish to combine two stocks, Encor and Maestro, into a portfolio with an expected return of 15.9 percent. The expected return of Encor is

You wish to combine two stocks, Encor and Maestro, into a portfolio with an expected return of 15.9 percent. The expected return of Encor is 1.9 percent with a standard deviation of 1 percent. The expected return of Maestro is 24.8 percent with a standard deviation of 9.9 percent. The correlation between the two stocks is 0.4.

What is the composition (weights) of the portfolio?

What is the portfolio standard deviation?

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