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Q2: Hyacinth Macaw invests 60% of her funds in stock X and the balance in stock Y. The standard deviation of returns on X is

Q2: Hyacinth Macaw invests 60% of her funds in stock X and the balance in stock Y. The standard deviation of returns on X is 10% and on Y it is 20%. Calculate the variance and standard deviation of the portfolio in the following three cases:

The correlation between the returns (xy) is 1.0

The correlation is 0.5

The correlation is 0

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