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You have split your portfolio 50-50% between the following two stocks: Stock A: E(r)=6% Standard deviation=40% Stock B: E(r)=8% Standard deviation=30% The correlation between the
You have split your portfolio 50-50% between the following two stocks:
Stock A: E(r)=6% Standard deviation=40%
Stock B: E(r)=8% Standard deviation=30%
The correlation between the two stocks is 0.4.
Calculate the standard deviation of your portfolio!
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