Question: Consider two risky stocks. Stock A has an expected return of 13 percent and a standard deviation of 18. Stock B has an expected return

Consider two risky stocks. Stock A has an expected return of 13 percent and a standard deviation of 18. Stock B has an expected return of 9 percent and a standard deviation of 13 percent. The correlation coefficient between the two stocks is 0.6. What is the expected return of a portfolio where 60 percent of the capital is invested in stock A and 40 percent is invesed in stock B?

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