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Consider a portfolio consisting of $100,000 worth of Stock A and $300,000 worth of Stock B. The standard deviations of the portfolios, Stock As, and
Consider a portfolio consisting of $100,000 worth of Stock A and $300,000 worth of Stock B. The standard deviations of the portfolios, Stock As, and Stock Bs returns are p = 8.4%, A = 8.0%, and B = 9.7% respectively. Calculate the correlation coefficient A,B between rA and rB . State your answer with 4 digits after the decimal point.
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