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Portfolio Variance = xo +xzo? +2(x,xP 120,02) Where X = Proportion of stock within portfolio o = standard deviation p= correlation coefficient Stocks: Stock L: Stock M: p=.19 o=17 o=11 X=60% X=40% Return = 8.1% Return=3.5% Find the Portfolio Rate of Return, then find the Portfolio Variance and Standard Deviation