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Stock A has a standard deviation of 10% and stock B has a standard deviation of 16%. Both stocks have a correlation coefficient of zero
Stock A has a standard deviation of 10% and stock B has a standard deviation of 16%. Both stocks have a correlation coefficient of zero and the same expected return of 8%. If the two stocks are combined equally in a portfolio, what would be the portfolio standard deviation?
Select one:
a. 13%
b. 11.36%
c. 9.43%
d. 8%
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