Given the returns of two stocks J and K in the table below over the next 4 years. Find the expected return and standard deviation of holding a portfolio of 40% of stock J and 60% in stock K over the next 4 years: 
A) 10.6% and 1.34%
B) 10.6% and 1.79%
C) 10.6% and 1.16%
D) 14.3% and 2.02%
Correct Answer:
Verified
Q83: Table 8.1 Q84: A portfolio of two negatively correlated assets Q85: Combining uncorrelated assets can reduce risk-not as Q86: A portfolio combining two assets with less Q90: Over long periods, returns from internationally diversified Q90: A portfolio combining two assets whose returns Q92: Akai has a portfolio of three assets.
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