Calculate the standard deviation correlation coefficient

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The expected return of Cullumber is 17.7 percent, and the expected return of Riverbed is 22.7 percent. Their standard deviations are 11.7 percent and 19.7 percent, respectively. If a portfolio is composed of 35 percent Cullumber and the remainder Riverbed, calculate the expected return and the standard deviation of the portfolio, given a correlation coefficient between Cullumber and Riverbed of 0.35. (Round intermediate calculations to 4 decimal places, e.g. 31.2125 and final answers to 2 decimal places, e.g. 15.25%.)

Calculate the standard deviation if the correlation coefficient is - 0.35. (Do not round intermediate calculations. Round answer to 2 decimal places, e.g. 15.25%.)

Reference no: EM133072013

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