Question: A company's portfolio has an expected return of 10% and a standard deviation of 12%. The company decides to invest 40% of the portfolio in

A company's portfolio has an expected return of 10% and a standard deviation of 12%. The company decides to invest 40% of the portfolio in a low-risk asset with a return of 5% and 60% of the portfolio in a high-risk asset with a return of 20% and a standard deviation of 20%. What is the expected return and standard deviation of the new portfolio?

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