Answer The expected return remains the same at 13%.
{"Image DocumentName": "Answer The expected return remains the same at 13%.", "Image ImageDescription": "The standard deviation declines from 23.5% to 19.62% as the correlations declines from 0.75 to The weight average of the standard deviation of the two funds is 25%, which would be the standard deviation of the portfolio if the two funds are perfectly correlated. Given less than perfect correlation, investing in the two funds leads to a reduction in standard deviation, as a result of diversification. FIN3000, Liuren Wu.", "Image XResolution": "37", "Image YResolution": "37", "Image ResolutionUnit": "Pixels/Centimeter", "Image Software": "SlidePlayer", "Image YCbCrPositioning": "Centered"}