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You can form a portfolio of two assets, A and B, whose returns have the following characteristics: Stock Expected Return, % Standard Deviation, % Correlation
You can form a portfolio of two assets, A and B, whose returns have the following characteristics:
Stock | Expected Return, % | Standard Deviation, % | Correlation |
A | 16 | 11 | 0.5 |
B | 10 | 18 |
If you demand an expected return of 13%, what is the portfolios standard deviation? Report your answer in decimal form
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