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Calculate the expected return and the standard deviation

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Reference no: EM132908379

Question - The ABC investment fund has $1000000 in total assets with $600000 in Stock A and $400000 in Stock B. The correlation between the two stocks is 0.2

Stock A: Standard Deviation =40%, Expected return=11%

Stock B: Standard Deviation =20%, Expected return=13.5%

Calculate the expected return and the standard deviation of return of the ABC Fund. Provide detail calculation.

Reference no: EM132908379

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