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Answer all questions with explanation David has $10,000 invested in a portfolio (P) with a standard deviation of 7%. Imagine he sells 70% of it
Answer all questions with explanation
David has $10,000 invested in a portfolio (P) with a standard deviation of 7%. Imagine he sells 70% of it and invests in Asset Z, which has a standard deviation of 5%. Label his new portfolio PP. If the correlation coefficient between P and Z is -0.5, what is the standard deviation of David's new portfolio (PP)?
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