Average return and standard deviation of return

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Year Return on security A 2017 10% 2018 12% 2019 14%

Assume that security B has an average return of 16% and a standard deviation of return of 3.3%, and that correlation between security A in (b) and security B is -1. Calculate the average return and standard deviation of return for a portfolio 50% invested in security A and 50% invested in security B. Comment on the result.

Reference no: EM132516297

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