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The questions answered are incorrect, they are just there to provide you with what the question wants. You have a portfolio with a standard deviation
The questions answered are incorrect, they are just there to provide you with what the question wants.
You have a portfolio with a standard deviation of 21% and an expected return of 19%. You are considering adding one of the two stocks in the following table. If after adding the stock you will have 30% of your money in the new stock and 70% of your money in your existing portfolio, which one should you add? Expected Standard Correlation with Return Deviation Your Portfolio's Returns Stock A Stock B 15% 15% 23% 16% 0.2 0.7Step by Step Solution
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