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A portfolio has 15% of its value in IBM shares and the rest in Microsoft(MSFT). The volatility of IBM and MSFT are40% and30%, respectively, and

A portfolio has 15% of its value in IBM shares and the rest in Microsoft(MSFT). The volatility of IBM and MSFT are40% and30%, respectively, and the correlation between IBM and MSFT is 0.5. What is the standard deviation of theportfolio?

21.94%

23.09%

25.4%

20.78%

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