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Tim sets up a portfolio of two stocks: stock X and stock Y. He plans to put 40% of the funding in Stock X, and

Tim sets up a portfolio of two stocks: stock X and stock Y. He plans to put 40% of the funding in Stock X, and the rest in Stock Y. If the standard deviation on Stock X is 10%, and 18% on Stock Y. The correlation coefficient between the two stocks is 0.22. Calculate the portfolio's standard deviation. (you MUST show your work to earn ANY bonus point).

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