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Given 2 stocks with the following data. Stock Expected Return Standard Deviation Delta 20. 14.9 Echo 16.1% 67.9 Correlation coefficient between Delta & Echo =
Given 2 stocks with the following data.
Stock | Expected Return | Standard Deviation |
Delta | 20. | 14.9 |
Echo | 16.1% | 67.9 |
Correlation coefficient between Delta & Echo = + 0.05
Calculate the standard deviation of a 2-stock portfolio consisting of 95% Delta & 5% Echo. Show all work or attach Excel spreadsheet.
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