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Compute portfolio expected return and standard deviation

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Reference no: EM132534992

You are given the following information

                                 Stock 1                       Stock 2

Expected Return                30%                     15%

Standard Deviation              20%                12%

Question 1: Assume that the correlation coefficient between stock 1 and stock 2 returns is 10%. Compute the portfolio expected return and standard deviation if you invest 10% of your wealth in stock 1.

Reference no: EM132534992

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