You have $8,400 to invest. You decide to invest $24,000 in Google and short sell...
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You have $8,400 to invest. You decide to invest $24,000 in Google and short sell $15,600 worth of Yahoo! Google's expected return is 14% with a volatility of 36% and Yahoo!'s expected return is 12% with a volatility of 24%. The stocks have a correlation of 0.92. What is the expected return and volatility of the portfolio
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