What is the expected return on a portfolio composed

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Security F has an expected return of 10.9% and a standard deviation of 24% per year. Security G has an expected return of 18.1% and a standard deviation of 63% per year.

a) What is the expected return on a portfolio composed of 31% of security F and 69% of security G?

b) If the correlation between the returns of security F and security G is 0.23, what is the standard deviation of the portfolio described in part (a)?.

Reference no: EM13730347

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