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You are composing a two-stock portfolio consisting of 40 percent Stock P and 60 percent Stock Q. Given the following information, find the standard deviation
You are composing a two-stock portfolio consisting of 40 percent Stock P and 60 percent Stock Q. Given the following information, find the standard deviation of this portfolio.
Company | Beta | Expected Return | Variance | Covariance |
P | 1.6 | .18 | .30 | COVP,Q = 0.080 |
Q | 2.8 | .22 | .04 |
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