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Suppose Tesla's stock has a volatility of 6 0 % , while BMW s stock has a volatility of 3 0 % . If the

Suppose Tesla's stock has a volatility of

60 %,

while BMW

s stock has a volatility of

30 % .

If the correlation between these stocks is

40 %,

what is the volatility of the following portfolios of Tesla and BMW:

25 %, 75 %

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