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Assume that you hold a two-stock portfolio, consisting of Stock A and Stock B. Assign a variance for each of these stocks and the portfolio
Assume that you hold a two-stock portfolio, consisting of Stock A and Stock B. Assign a variance for each of these stocks and the portfolio separately, depending on your choice. Also assign portfolio weights for stocks A and B. Then, calculate the correlation coefficient between the returns on Stock A and Stock B? (The use of the same input data by different students will be treated as a cheat attempt and will be penalized severely).
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