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** please answer with detailed workings and provide formulas. thank you Stock 1 has expected volatility of 15% Stock 2 has expected volatility of 20%
** please answer with detailed workings and provide formulas. thank you
Stock 1 has expected volatility of 15%
Stock 2 has expected volatility of 20%
Suppose stock 1 and 2 have correlation of 0.2
What is the closest to the expected volatility of a portfolio that is 60% stock 1 and 40% stock 2?
a. 11%
b. 12%
c. 13%
d. 14%
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