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What is the expected return of a portfolio

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Walmart has an expected return of 23% and a standard deviation of 14%. Microsoft has an expected return of 44% and a standard deviation of 24%. The correlation between Walmart and Microsoft is 0.7. What is the expected return of a portfolio that consists of a long position of $10,000 in Walmart and a short position of $2,000 in Microsoft?

Reference no: EM133062378

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