Portfolio R offers an expected return of 12% with a standard deviation of 20%. Portfolio S has an expected return of 8% with a standard deviation of 10%. The correlation of the portfolios' returns is 0.5.
-Refer to the information above. What is the expected return of a new portfolio that is
60% invested in Portfolio R and 40% in Portfolio S?
Correct Answer:
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Q7: Which of the following statements is true?
A)Diversification
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