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Calculate the expected return and standard deviation

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Calculate the expected return and standard deviation of the portfolio comprising a debt security A and an equity security B where the table below shows the results of market analysis conducted on the security returns. The analysis further shows that the correlation P between the two securities is 0.4

Security Portfolio weightings Expected return Standard deviation

A 45% 7% 9%

B 55% 15% 19%

Reference no: EM132436141

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