What is the expected return on a portfolio

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Security F has an expected return of 10% and a standard deviation of 43% per year. Security G has an expected return of 15% and a standard deviation of 62% per year.

a. What is the expected return on a portfolio composed of 30% of Security F and 70% of Security G?

b. If the correlation between the returns of Security F and Security G is 0.25, what is the standard deviation of the portfolio described in part (a)?

Reference no: EM133111083

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