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You are considering combining two risky portfolios, one made of stocks and another made up of cryptocurrencies. The following information is provided about the expected

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You are considering combining two risky portfolios, one made of stocks and another made up of cryptocurrencies. The following information is provided about the expected returns of each portfolio. [ a) If you decided to invest 30% in the stock portfolio and 70% in the cryptocurrency portfolio, what is the return of the new portfolio? (5) b) If the standard deviation of the crypto portfolio is 24%, calculate the standard deviation of the new portfolio containing stocks and crypto. (3) c) If the correlation coefficient of the new portfolio is 0,33 , comment on the overall risk of the portfolio. Do you think it is a good idea to combine these securities? (2) You are considering combining two risky portfolios, one made of stocks and another made up of cryptocurrencies. The following information is provided about the expected returns of each portfolio. [ a) If you decided to invest 30% in the stock portfolio and 70% in the cryptocurrency portfolio, what is the return of the new portfolio? (5) b) If the standard deviation of the crypto portfolio is 24%, calculate the standard deviation of the new portfolio containing stocks and crypto. (3) c) If the correlation coefficient of the new portfolio is 0,33 , comment on the overall risk of the portfolio. Do you think it is a good idea to combine these securities? (2)

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