An investment has an expected return of 9.25 percent and standard deviation of 3.38 percent. Another investment has an expected return of 14 percent and a standard deviation of 4.93 percent. What is the expected return of the portfolio and its standard deviation if both are combined into a portfolio with 70 percent invested in the first investment and 30 percent in the second? Assume the correlation coefficient (ij) is -.40.
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