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An investor can design a risky portfolio based on two stocks, A and B in which each asset will have weight of 45%. Stock A
An investor can design a risky portfolio based on two stocks, A and B in which each asset will have weight of 45%. Stock A has an expected return of 15% and a standard deviation of return of 21%. Stock B has an expected return of 10% and a standard deviation of return of 15%. The correlation coefficient between the returns of A and B is 0.3. The risk-free rate of return is 5%. What is the risk of your portfolio?
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