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The expected rate of return on AAA Company is 20.00% and its standard deviation is 25.50%. The expected rate of return on BBX Company is

The expected rate of return on AAA Company is 20.00% and its standard deviation is 25.50%. The expected rate of return on BBX Company is 7.10% and its standard deviation is 13.40%. The correlation coefficient for the two stocks is 0.85. Calculate the standard deviation of a portfolio that is 78% invested in AAA and the remainder in BBX.

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