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A portfolio is composed of two stocks, A and B. The returns of stock A have a standard deviation of 15%, while the returns of
A portfolio is composed of two stocks, A and B. The returns of stock A have a standard deviation of 15%, while the returns of stock B have a standard deviation of 9%. Stock A comprises 65% of the portfolio, and stock B comprises 35% of the portfolio. What is the correlation coefficient between the returns on stocks A and the returns on stock B if the standard deviation of the returns on the portfolio is 12%?
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