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Business, 01.07.2021 20:50 sethlynn2003

Given the following information: A smart investor is operating in a global market that includes two securities A and B from two major markets. A has an expected return of 15% and a standard deviation of 10%. B has an expected return of 20% and a standard deviation of 15%. A and B are perfectly negatively correlated. The expected return from such a portfolio with zero risk is given by:.
a. 18%.
b. 18.16%.
c. 20.4%.
d. 17%.

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