Question: You want to create a portfolio which will include the stocks of CIBC and Suncor. You have gathered the following information about these two companies

You want to create a portfolio which will include the stocks of CIBC and Suncor.

You have gathered the following information about these two companies

Expected Return

Standard Deviation

Suncor

19.04%

14.30%

CIBC

5.41%

1.00%

Correlation

0.3

You have decided to invest $70,000 in CIBC and $30,000 in Suncor. What is the expected rate of return and standard deviation of your portfolio? ( Please answer on paper )

*** You must show your work to get credit (you can use both sides of the page to show your work)

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