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Stock 1 has an expected return of 7% and a standard deviation of 37%. Stock 2 has an expected return of 16% and a standard
Stock 1 has an expected return of 7% and a standard deviation of 37%. Stock 2 has an expected return of 16% and a standard deviation of 15%. Their correlation is -0.68. You invest 40% in stock 1 and 60% in stock 2.
What is the standard deviation of the portfolio?
What is the expected return of the portfolio?
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