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A and B are negatively correlated stocks with -0.8 correlation coefficient. Expected returns of both stocks are as follows: Weight Expected return (ri) % Standard

A and B are negatively correlated stocks with -0.8 correlation coefficient. Expected returns of both stocks are as follows:

Weight Expected return (ri) % Standard Deviation
A 80% 30% 8%
B 20% 26% 5%

What is the portfolios standard deviation

Select one:

a. 5.6%

b. 7.6%

c. 4.2%

d. 6.5%

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