Question: Stock A's expected return and standard deviation are E l - 10% and 4 - 18%. Stock Z's expected return and standard deviation are E[ra]
Stock A's expected return and standard deviation are E l - 10% and 4 - 18%. Stock Z's expected return and standard deviation are E[ra] = 7% and 6 = 12%. If the weights in your portfolio are 45% and 55% for stocks A and Z, respectively, what is the expected return and the standard deviation of your portfolio if the correlation between A and Z is 0.6? (show me your work, no credit given unless work is shown, circle your final answers)
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