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7) (10 points) A portfolio is composed of two stocks, A and B. Stock A has a standard deviation of retum of 30%, while stock

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7) (10 points) A portfolio is composed of two stocks, A and B. Stock A has a standard deviation of retum of 30%, while stock B has a standard deviation of return of 10%. The correlation coefficient between the returns on A and B is 0.15. Stock A comprises 40% of the portfolio while stock B comprises 60% of the portfolio. Calculate the standard deviation of the return on this portfolio

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