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The expected returns for ABC Company and XYZ Company are 12 percent and 9 percent, respectively. The standard deviation is 20 percent for ABC and
The expected returns for ABC Company and XYZ Company are 12 percent and 9 percent, respectively. The standard deviation is 20 percent for ABC and 15 percent for XYZ. What is the portfolio standard deviation if one-third of the portfolio is in ABC and the two securities have perfect positive correlation?
A. 16.67% B. 10.00% C. 2.78% D. 1.00%
Please answer without using Excel
Many thanks!
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