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16. Stock A has a standard deviation of 10% and stock B has a standard deviation of 16%. Both stocks have a correlation coefficient of

16. Stock A has a standard deviation of 10% and stock B has a standard deviation of 16%. Both stocks have a correlation coefficient of zero and the same expected return of 8%. If the two stocks are combined equally in a portfolio, what would be the portfolio standard deviation?

Select one:

a. 8%

b. 13%

c. 9.43%

d. 11.36%

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