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Stock A has a standard deviation of 19%. Stock B has a standard deviation of 11%. The correlation coefficient between A and B is 0.6.

Stock A has a standard deviation of 19%. Stock B has a standard deviation of 11%. The

correlation coefficient between A and B is 0.6. If you are 55% in A and 45% in B, what is the

standard deviation of your portfolio? If you change the portfolio above to be 20% TBills, what is the new standard

deviation?

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