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Consider a portfolio with two assets. Asset A comprises 15% of the portfolio, has a standard deviation of 16%, and a correlation with the market
Consider a portfolio with two assets. Asset A comprises 15% of the portfolio, has a standard deviation of 16%, and a correlation with the market index of 0.75. Asset B has a standard deviation of 8% and a correlation with the market index of 0.15. If the market returns and the standard deviation of returns on the market are 12% and 10% respectively, and the risk-free rate is 3%, what is the portfolio's required rate of return? What is the required rate of return? (%)
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