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The expected return and standard deviation of a portfolio that is 70 percent invested in 3 Doors, Inc., and 30 percent invested in Down Co.

The expected return and standard deviation of a portfolio that is 70 percent invested in 3 Doors, Inc., and 30 percent invested in Down Co. are the following:

3 Doors, Inc. Down Co.
Expected return, E(R) 12 % 10 %
Standard deviation, 45 34

What is the standard deviation if the correlation is +1? 0? 1?

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