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Posted on Jul 31, 2024

Stock A has a standard deviation of 1 5 percent per year and stock B has a standard deviation of 2 1 percent per year.

Stock A has a standard deviation of

15

percent per year and stock B has a standard deviation of

21

percent per year. The correlation between stock A and stock Bis

0.30 .

You have a portfolio of these two stocks wherein stock B has a portfolio weight of

60

percent. What is your portfolio standard deviation?

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