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Consider two risky assets (X and Y) that have a standard deviation of 25% and 18% respectively. Compute the variances and standard deviations of portfolio
Consider two risky assets (X and Y) that have a standard deviation of 25% and 18% respectively. Compute the variances and standard deviations of portfolio returns for an equal weighted portfolio of the two assets when their correlation of return is: i) xy = 1.00, ii) xy = 0.50, iii) xy = 0, iv) xy = -0.50
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