question archive 3) Security A has a 10% expected return and a standard-deviation of 8%

3) Security A has a 10% expected return and a standard-deviation of 8%

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3) Security A has a 10% expected return and a standard-deviation of 8%. Security B yields a 12% expected return and has a 10% standard-deviation. The expected correlation coefficient between A and B is 0.5. An investor allocates 50% of the funds in security A and 50% in security B. Calculate the expected return and the standard-deviation of the portfolio. (2 points)

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