Imagine that two assets have the same average return

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Imagine that two assets have the same average return of 10 percent and the same standard deviation of 30%.

Would the average return on a 50-50 portfolio of these two stocks be equal to, greater than, or less than 10 percent?

Would the portfolio standard deviation be equal to, greater than, or less than 30%?

Explain why.

Reference no: EM131188649

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