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What is the expected return of a new portfolio

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Reference no: EM132087085

Portfolio R offers an expected return of 12% with a standard deviation of 20%. Portfolio S has an expected return of 8% with a standard deviation of 10%. The correlation of the portfolios' returns is 0.5.

Refer to the information above. What is the expected return of a new portfolio that is 60% invested in Portfolio R and 40% in Portfolio S?

Reference no: EM132087085

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