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A portfolio has 40% of its value in IBM shares and the rest in Microsoft (MSFT). The volatility of IBM and MSFT are 35% and

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A portfolio has 40% of its value in IBM shares and the rest in Microsoft (MSFT). The volatility of IBM and MSFT are 35% and 30%, respectively, and the correlation between IBM and MSFT is 0.4 . What is the standard deviation of the portfolio? A) 30.89% B) 26.86% C) 22.83% D) 29.55%

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