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A portfolio has 30% of its funds in stock A and 70% in stock B. The correlation between stocks A and B is 0.5. Stock
A portfolio has 30% of its funds in stock A and 70% in stock B. The correlation between stocks A and B is 0.5. Stock A's standard deviation is 15%, stock B's standard deviation is 25%. How much is the portfolio's standard deviation?
22.8% | ||
16.2% | ||
18.7% | ||
22.0% | ||
20.1% |
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