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Question No 2 A portfolio is 40% invested in stocks that have a standard deviation of returns of 20% and remaining are invested in bonds

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Question No 2 A portfolio is 40% invested in stocks that have a standard deviation of returns of 20% and remaining are invested in bonds that have a standard deviation of returns of 12%. The correlation of bond returns with stock returns is 0.40. a) What is the standard deviation of portfolio returns? b) What would it be if stock and bond returns were perfectly negatively correlated? Question No 03

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