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Stock A has an expected return of 5%, and a standard deviation of returns of 10%. Stock B has an expected return of 15% and

Stock A has an expected return of 5%, and a standard deviation of returns of 10%. Stock B has an expected return of 15% and a standard deviation of returns of 20%. The correlation between the two stocks returns in 0.90. The standard deviation of an equally-weighted portfolio comprised of the two stocks will be:

more than 15%

None of the answers listed here.

15%

less than 15%

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