# Question

You are interested in using short selling to increase the possible returns from your portfolio.19 you have short sold $200 of ABC and invested $1,200 in DEF. The following data are available on ABC and DEF:

The correlation between ABC and DEF is 0.4. Calculate the expected return and standard deviation of the portfolio. (Hint: The total invested is $1,000, and while individual weights can be greater than one or less than zero, the sum of the weights must still beone.)

The correlation between ABC and DEF is 0.4. Calculate the expected return and standard deviation of the portfolio. (Hint: The total invested is $1,000, and while individual weights can be greater than one or less than zero, the sum of the weights must still beone.)

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