Find the expected return on portfolio

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A portfolio is composed of two stocks, A and B. Stock A has an expected return of 12% while stock B has an expected return of 15%. Stock A has a standard deviation of return of 5% while stock B has a standard deviation of return of 15%. The correlation coefficient between the returns on A and B is 0.8. Stock A comprises 40% of the portfolio while stock B comprises 60% of the portfolio.

Find the expected return on Portfolio?

Reference no: EM132531007

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