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Calculate the volatility of an equity portfolio with $20,000,000 in McDonald's and $75,000,000 in Walmart stock. The expected return on McDonald's is 10% and the
Calculate the volatility of an equity portfolio with $20,000,000 in McDonald's and $75,000,000 in Walmart stock. The expected return on McDonald's is 10% and the standard deviation of McDonald's returns is 25%. The expected return on Walmart is 19%, and Walmart's standard deviation of returns is 21%. The correlation coefficient between the two stocks is 0.212.
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