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Use the Following Information to Answer Questions 8-9

question 50

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Use the following information to answer questions 8-9.
An investor is considering a portfolio consisting of 60% invested in Stock X and 40% invested in Stock Y. The expected returns for the stocks are 10% for Stock X and 8% for Stock Y. Variance of the stock returns are 0.04 for Stock X and 0.02 for Stock Y, and a covariance of -0.01 between the two stocks.
-What is the expected return of the proposed portfolio?


Definitions:

Mammary Glands

Glandular organs located in the breasts of females that are responsible for the production and secretion of milk.

Prolactin

A hormone produced by the anterior pituitary gland that stimulates milk production after childbirth.

Sperm Cell

A male reproductive cell or gamete involved in sexual reproduction.

Ovum

One egg. The female “egg” that unites with the male sperm to begin reproduction.

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