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There are two stocks in your portfolio. Stock A B Weight 1/3 2/3 EO) 9% 15% Variance 0.0036 0.0081 a) Assume stock A and B

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There are two stocks in your portfolio. Stock A B Weight 1/3 2/3 EO) 9% 15% Variance 0.0036 0.0081 a) Assume stock A and B are perfectly positively correlated, calculate the risk and return for your portfolio. b) Repeat (a), assume the correlation is 0. Why is the risk now lower than in (a)

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