Stock A has an expected return of 10% and a standard deviation of 5%. Stock B has

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Stock A has an expected return of 10% and a standard deviation of 5%. Stock B has an expected return of 15%

and a standard deviation of 20%. The correlation between the two is shares is 0.25. You can invest risk free at a 5% interest rate. What is the standard deviation for a portfolio with weights 25% in A, 25% in B and 50% in the risk free asset?

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Lectures On Corporate Finance

ISBN: 9789812568991

2nd Edition

Authors: Peter L Bossaerts, Bernt Arne Odegaard

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Question Posted: May 21, 2024 03:01 AM

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Stock A has an expected return of 10% and a standard deviation of 5%. Stock B has

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Lectures On Corporate Finance

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