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Calculating Portfolio Risk & Return : Financial Management Question Worked Example: Portfolio Risk and Return Consider two risky assets that have returns variances of 0.0625

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Calculating Portfolio Risk & Return : Financial Management Question

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Worked Example: Portfolio Risk and Return Consider two risky assets that have returns variances of 0.0625 and 0.0324, respectively. The asset's standard deviations of returns are then 25% and 18%, respectively. Calculate the standard deviation of portfolio returns for an equally weighted portfolio of the two assets when their correlation of returns is 0.5

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