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    Expected Return and Standard Deviation of a Stock

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    Stock A has expected return of 12% and standard deviation of 40%. Stock B has an expected return of 18% and standard deviation of 60%. The correlation coeffecient between stocks A and B is 0.2.

    What are the expected return and standard deviation of a portofolio invested 30% in stock A and 70% in stock B?

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    Solution Summary

    The solution explains how to calculate the expected return and standard deviation of a portfolio in an attached Excel file.