What would be the return and risk of portfolio invested

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Reference no: EM132064020

The annualized performance, in U.S. dollars, of the U.S. and European stock indices are:

Return US 10% US 16% Returneurope 11% europe 18% Correlation 0.60

a. What would be the return and risk of a portfolio invested half in the U.S. market and half in the European index? b. What if the correlation increases to 0.8?

Reference no: EM132064020

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