Question: Consider a two-stock portfolio containing Securities A and B. A has the expected return of 10% with standard deviation of 3% while B has the

Consider a two-stock portfolio containing Securities A and B. A has the expected return of 10% with standard deviation of 3% while B has the expected return of 20% with standard deviation of 5%. The weights for A and B are 60% and 40% respectively. The correlation coefficient between A and B is 0.02. Calculate the expected return (E(R)) and standard deviation (SD) of the above portfolio.

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