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Given the following information about two stocks: E(R1) = 10 E(R2) = 15 E(SD1) = .03 E(SD2) = .05 W1 = .30 W2 = 70

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Given the following information about two stocks: E(R1) = 10 E(R2) = 15 E(SD1) = .03 E(SD2) = .05 W1 = .30 W2 = 70 Calculate the expected standard deviation of the two-stock portfolio when the correlation is 0.40. Select one: a. .0016 b. .0160 c. .0395 d. . 1558 e. .3950

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