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Investment a Has an Expected Return of 10% with a Standard

Question 179

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Investment A has an expected return of 10% with a standard deviation of 3.5%.Investment B has an expected return of 6% with a standard deviation of 1.2%.If you invest equally in both investments,what is the expected return and standard deviation of your portfolio? What assumptions have you made?

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E(A + B)= 0.10 + 0.06 = 0.16
A...

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