# using the following information to calculate the expected return and the standard deviation of a portfolio...

 using the following information to calculate the expected return and the standard deviation of a portfolio that is 50% in vested in 3 door inc. and in down co. 3 doors inc. down co. expected return 14% 10% standard deviation 42 31 correlation 0.1 What is the standard devciation if the correlation is +1, 0, and -1 here. What do you see happening to the portfolio volatility and why?

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