Question: The expected returns and standard deviation of returns for two securities are as follows: Security 1 Security 2 Expected Return 15% 35% Standard Deviation 20%

 The expected returns and standard deviation of returns for two securities

are as follows: Security 1 Security 2 Expected Return 15% 35% Standard

The expected returns and standard deviation of returns for two securities are as follows: Security 1 Security 2 Expected Return 15% 35% Standard Deviation 20% 40% The correlation between the returns is .25

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