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1.You form a portfolio of two stocks: $400 in Merck and $600 in Home Depot.The standard deviation of returns for Merck and Home Depot are
1.You form a portfolio of two stocks: $400 in Merck and $600 in Home Depot.The standard deviation of returns for Merck and Home Depot are 16% and 24%, respectively.The correlation between these two stocks is 0.19.What is the standard deviation of the portfolio?
a)28.1%
b)21.5%
c)20.8%
d)16.8%
e)8.7%
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