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Say you have $10,000 to invest and you invest $4,000 in stock A and the rest...

Say you have $10,000 to invest and you invest $4,000 in stock A and the rest in stock B. You know that the expected returns of stocks A and B are .2 and .1, respectively. If the correlation coefficient between the returns of the two assets is .67, find out the expected portfolio returns

a. 15%

b. 14%

c. 16%

d. Can not be determined

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Expert Solution

jeff jeffy answered 2 years ago
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