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Elizabeth's Portfolio Elizabeth has decided to form a portfolio by putting 30% of her money into stock 1 and 70% into stock 2. She assumes
Elizabeth's Portfolio Elizabeth has decided to form a portfolio by putting 30% of her money into stock 1 and 70% into stock 2. She assumes that the expected returns will be 10% and 18%, respectively, and that the standard deviations will be 15% and 24%, respectively.
{Elizabeth's Portfolio Narrative} Compute the standard deviation of the returns on the portfolio assuming that the two stocks' returns are uncorrelated.
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