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wevest Financial Advisors suggests an investment in two stocks (40% in Stock A and 60% in Stock B). They claim the investment will reduce risk

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wevest Financial Advisors suggests an investment in two stocks (40% in Stock A and 60% in Stock B). They claim the investment will reduce risk through diversification, but they need proof. This is the historical returns for the two stocks Returns (%) Year 2012 2013 2014 2015 2016 Stock A Stock 12.96% 15.37% 16.38 14.68 12.17 10.51 10.88 10 points 7.79 10.31 6.01 eBook Print a. Using a 40/60 split, what is the weighted average standard deviation of the two stocks? (Enter your answer as a percent rounded to two decimal places) References Weighted average standard deviation b. Recalculate the standard deviation of a portfolio of the two stocks. (Enter your answer as a percent rounded to two decimal places) Portfolio standard deviation 2016 10.88 6.01 t, what is the weighted average standard deviation of the two stocks? (Enter your answer as a percent a. Using a 40/60 spli rounded to two decimal places.) Weighted average standard deviation b. Recalculate the standard deviation of a portfolio of the two stocks. (Enter your answer as a percent r decimal places) ounded to two ortfolio standard deviation c. What is the reduction in standard deviation that results from the creation of a answer as a percent rounded to two decimal places.) portfolio of the two stocks? (Enter your Reduction in standard deviation

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