Question: Refer to Exercise 7.63. Compute the expected value and standard deviation of the portfolio composed of 60% stock 1 and 40% stock 2. The coefficient

Refer to Exercise 7.63. Compute the expected value and standard deviation of the portfolio composed of 60% stock 1 and 40% stock 2. The coefficient of correlation is .4.

An investor is given the following information about the returns on twostocks:

Stock Mean Standard deviation 09 13 15 .21

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