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A fund manager is considering investing 50% of money into a stock portfolio and 50% into a risky bond portfolio. The correlation between the stock
A fund manager is considering investing 50% of money into a stock portfolio and 50% into a risky bond portfolio. The correlation between the stock and bond portfolios is 0.5. The stock portfolio has an expected return of 28% and a standard deviation of 48%. The risky bond portfolio has an expected return of 12% and a standard deviation of 24%. The standard deviation of the resulting portfolio will be ________________.
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