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You are considering forming a portfolio using two stocks, Stock Q and Stock W . Stock Q has a beta of 1 . 3 and
You are considering forming a portfolio using two stocks, Stock Q and Stock W Stock Q has a beta of and the standard deviation of its returns has been estimated to be For Stock W the beta is and the standard deviation is Assuming that the riskfree rate is and the market risk premium is If the correlation between the returns of Q and W is what is the standard deviation for the portfolio that can have a target expected return of
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