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What are expected return and standard deviation of returns

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Portfolio risk and return. Ebenezer Scrooge has invested 60% of his money in share A and the remainder in share B. He assesses their prospects as follows:

                                                                project

                                                             A                            B
Expected Return (%)                    15                      20
Standard Deviation (%)                  20                      22
Correlation between returns 0.5 for both projects
Invested Money                              0.6                     0.4

Problem A. What are the expected return and standard deviation of returns on his portfolio?

Problem B. How would your answer change if the correlation coefficient were 0 and -5.

Reference no: EM132994722

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