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Stock 1 has an expected return of 6% and a standard deviation of 29%. Stock 2 has an expected return of 11% and a standard
Stock 1 has an expected return of 6% and a standard deviation of 29%. Stock 2 has an expected return of 11% and a standard deviation of 24%. Their correlation is -0.1.
You invest 30% in stock 1 and 70% in stock 2.
Part 1
What is the standard deviation of the portfolio?
_________
Part 2
What is the expected return of the portfolio?
_____________
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