Suppose expected returns in the United States and Germany are 10 percent and 20 percent, respectively. Standard
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Suppose expected returns in the United States and Germany are 10 percent and 20 percent, respectively. Standard deviations are also 10 percent and 20 percent, respectively. Calculate the standard deviation of an equal-weighted portfolio under the following four cases: (a) perfect positive correlation, (b) perfect negative correlation, (c) zero correlation, and (d) a correlation of 0.3.
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