Consider a portfolio comprised of two stocks A and B: The estimates shown below are...
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Consider a portfolio comprised of two stocks A and B: The estimates shown below are given in percentage format for the expected return, E(R), and standard deviation of returns (SD). Stock Weight E(R) SD A 0.40 16% 45% B 0.60 12% 30% The correlation between stocks A and B is .75. Calculate the portfolio expected return and standard deviation.
| A. 13.6%, 33.67% |
| B. 13.6%, 12.73% |
| D. none of the above |
| C. 12.1%, 18.62% |
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