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(Another tough one.) Ms. Tomato has invested 1/3 of her money in Czech Corp. stock and the remainder in Slovak Corp. stock.On past evidence, the
(Another tough one.) Ms. Tomato has invested 1/3 of her money in Czech Corp. stock and the remainder in Slovak Corp. stock.On past evidence, the standard deviation is 10 percent for Czech and 5 percent for Slovak.Suppose the correlation of returns between Czech and Slovak was-1.0.What is the standard deviation of Ms. Tomato's portfolio?
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