What is the expected return on a portfolio composed

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Security F has an expected return of 10.10 percent and a standard deviation of 43.10 percent per year.

Security G has an expected return of 15.10 percent and a standard deviation of 62.10 percent per year.

a. What is the expected return on a portfolio composed of 31 percent of Security F and 69 percent of Security G?

b. If the correlation between the returns of Security F and Security G is .26, what is the standard deviation of the portfolio described in part (a)?

Reference no: EM131982925

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