Question: Given another investment with an expected value of 12 percent
Given another investment with an expected value of 12 percent and a standard deviation of 2.2 percent that is countercyclical to the investment in problem 2, what is the expected value of the portfolio and its standard deviation if both are combined into a portfolio with 40 percent invested in the first investment and 60 percent in the second? Assume the correlation coefficient (rij) is –0.40.
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