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An investor is considering investing in a stock and a bond for his portfolio The stock has expected return of 20% and standard deviation of
An investor is considering investing in a stock and a bond for his portfolio The stock has expected return of 20% and standard deviation of 30% The bond has expected return of 10% and standard deviation of 15% The correlation of bond returns with stock returns is 0.2 The investor set the proportions in each asset so that he can achieve an expected return of 12% What is the standard deviation of the portfolio? (show your calculation below)
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