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Suppose for some reason you are required to invest 50% of your portfolio in bonds and 50% in stocks. The standard deviation for stock returns
Suppose for some reason you are required to invest 50% of your portfolio in bonds and 50% in stocks. The standard deviation for stock returns is 25% and for bond returns is 12%. The standard deviation of your portfolio is 15%, what must be the correlation coefficient between stock and bond returns?
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