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Business, 04.03.2020 00:28 abecobos37

An investor wishes to construct a portfolio consisting of a 70% allocation to a stock index and a 30% allocation to a risk free asset. The return on the risk-free asset is 4.5% and the expected return on the stock index is 12%. The standard deviation of returns on the stock index 6%. Calculate the expected return on the portfolio and the expected standard deviation of the portfolio.

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