Assume the following information for large-cap and small-capstock funds. Expected return on large-cap stock fund = 18%. Expected return on small-cap stock fund = 23%. Correlationbetween returns of large-cap and small-cap stock funds = 0.10. Standard deviation of returns on large-cap stock fund = 40%. Standard deviation of returns on small-cap stock fund = 50%. Theexpected return and standard deviation of an equally weightedportfolio of large-cap and small-cap stock funds are closestto:
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Expected return on large-cap stock fund = 18%.