The common stocks of Bajaj and TVS have expected returns of 15% and 20% respectively, while the standard deviations are 20% and 40%. The excepted correlation coefficient between the two stocks is 0.36. What is the excepted value of return and the standard deviation of a portfolio consisting of: (a) 40% Bajaj and 60% TVS? (b) 40% TVS and 60% Bajaj?
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