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Assume that COMPANY A has a standard deviation of 65%, COMPANY B has a standard deviation of 35% and the correlation between COMPANY A and

Assume that COMPANY A has a standard deviation of 65%, COMPANY B has a standard deviation of 35% and the correlation between COMPANY A and COMPANY B is 0.0.

What is the standard deviation of the portfolio comprised of 45% COMPANY A and 55% COMPANY B shares?

Multiple Choice

  • 25.87%

  • 35.02%

  • 31.24%

  • 27.56%


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