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5. A portfolio is composed of two stocks, A and B. Stock A has a standard deviation of return of 30% while stock B

5. A portfolio is composed of two stocks, A and B. Stock A has a standard deviation of return of 30% while stock B has a standard deviation of return of 12%. The correlation coefficient between the returns on A and B is 0.8. Stock A comprises 70% of the portfolio while stock B comprises 30% of the portfolio. The variance of return on the portfolio is A) .0533 B) .0558 C) .0575 D) .0604

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