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Here are the expected returns and standard deviations of returns for two investments: Stock A Er 10% SD 15% Stock B Er 15% SD 25%
Here are the expected returns and standard deviations of returns for two investments:
Stock A Er 10% SD 15%
Stock B Er 15% SD 25%
Calculate the standard deviation of a portfolio of 50% in Stock A and 50% in Stock B, assuming the stock returns have:
a. perfect positive correlation
b. perfect negative correlation
c. zero correlation
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