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You form a portfolio of two stocks: $400 in Merck and $600 in Home Depot.The standard deviation of returns for Merck and Home Depot are

You form a portfolio of two stocks: $400 in Merck and $600 in Home Depot.The standard deviation of returns for Merck and Home Depot are 16% and 24%, respectively.The correlation between these two stocks is 0.19.What is the standard deviation of the portfolio?

28.1%

21.5%

20.7%

16.8%

8.7%

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