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Which of the following is most correct concerning the standard deviation of a 2-stock portfolio ? a. The larger the two stocks return correlation, the

Which of the following is most correct concerning the standard deviation of a 2-stock portfolio?

a. The larger the two stocks return correlation, the bigger the portfolios standard deviation.

b. It can be greater than the weighted average of the two stocks standard deviations.

c. It must be equal to the weighted average of the two stocks standard deviations.

d. It is a simple average of the two stocks standard deviations.

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