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Consider the following information on the expected return and standard deviations of stock A and B, as well as the portfolio weights for the two
Consider the following information on the expected return and standard deviations of stock A and B, as well as the portfolio weights for the two stocks in a two-stock portfolio.
Stock A | Stock B | |
Expected Return | 20% | 50% |
Standard Deviation | 30% | 60% |
Portfolio Weight | 60% | 40% |
The correlation coefficient between the returns on the two stocks is 0.
What is the standard deviation of the return of this portfolio?
answer in percentage
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