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Suppose you own a portfolio with two securities. Security A has an expected return of 13.4% and a standard deviation of 59% per year. Security
Suppose you own a portfolio with two securities. Security A has an expected return of 13.4% and a standard deviation of 59% per year. Security B has an expected return of 9.3% and a standard deviation of 44% per year. Considering that your portfolio is composed of 35% of Security A and 65% of Security B, and that the correlation between their returns is .25, what is the standard deviation of your portfolio?
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