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An investor decides to put 60% of her funds in stock I, and the balance in stock J. The standard deviation of returns on

An investor decides to put 60% of her funds in stock I, and the balance in stock J. The standard deviation of returns on stock I is 10%, and on stock J is 20%. Calculate the variance of portfolio returns if: a. The correlation between returns is 1.0. b. The correlation is 0.5. c. The correlation is 0.

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