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The standard deviation of returns of stock X is 30% and that of stock Y is 30%. Suppose the correlation between these two stocks is

The standard deviation of returns of stock X is 30% and that of stock Y is 30%.

Suppose the correlation between these two stocks is -1.

When I hold both stocks in my portfolio with an equal proportion in each, what is the overall standard deviation of returns of the portfolio?

O a. zero

O b. equal to 60%

O c. unchanged at 30%

O d. more than 30%

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