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Stock A has a standard deviation of 15 percent per year and stock B has a standard deviation of 8 percent per year. The correlation

Stock A has a standard deviation of 15 percent per year and stock B has a standard deviation of 8 percent per year. The correlation between stock A and stock B is .40. You have a portfolio of these two stocks wherein stock B has a portfolio weight of 40 percent. What is your portfolio variance?

0.01143

0.01214

0.01329

0.01437

0.01470

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