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You are investing for your retirement. You put 40% of you money into stock A, with expected return of 12%, and standard deviation of 20%.
You are investing for your retirement. You put 40% of you money into stock A, with expected return of 12%, and standard deviation of 20%. The rest is invested in stock B, with expected return of 10%, and standard deviation of 15%. The correlation coefficient between Stock A and Stock B is 0.5. What is the expected return of your retirement portfolio? 17% O 11.2% 10.8% 18%
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