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The expected return of Stock A is 20% and the expected return of stock B is 15%. The standard deviation of Stock A is 44.721%
The expected return of Stock A is 20% and the expected return of stock B is 15%. The standard deviation of Stock A is 44.721% and the standard deviation of Stock B is 38.730%. If you invest in 2000 shares of Stock A with a share price of $50 and 4000 shares of Stock B with a share price of $10.
- What is the volatility of the portfolio if the correlation is -1? ( 5 points)
- What is the volatility of the portfolio if the correlation is +1? (5 points)
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