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Consider the following information on the expected returns and standard deviation of stocks A and B, as well as the portfolio weights for the two
Consider the following information on the expected returns and standard deviation of stocks A and B, as well as the portfolio weights for the two stocks in a two-stock portfolio: Expected return: Stock A = 20%, Stock B = 50% Standard Deviation: Stock A = 30%, stock B = 40% Portfolio Weight: Stock A= 60%, Stock B= 40% The Correlation Coefficient between the returns on the two stocks is 0. What is the standard deviation of the return on this portfilio?
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