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Your investment portfolio has two funds in it. Fund A provides 15.5% return a year with risk of 23.5%. Fund B provides 8% a year
Your investment portfolio has two funds in it. Fund A provides 15.5% return a year with risk of 23.5%. Fund B provides 8% a year with a risk of 11.5%. The two funds has a correlation coefficient of 0.4. If you have $600,000 in fund A and $400,000 in fund B, what is your portfolio return and
risk?
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