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Consider the following statistics based on the monthly returns of Stock A and Stock B in the last decade. Assume an economy where only these

Consider the following statistics based on the monthly returns of Stock A and Stock B in the last decade.

Assume an economy where only these two stocks exist.

What is the standard deviation of a portfolio that targets an expected return of 0.05?

Average Return Standard Correlation Deviation Stock A .03 .10 .40 Stock B .06 .20 .40

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