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You have the following information for Stock A and Stock B: Expected rate of return Stock A: .12 Stock B: .06 Standard deviation: Stock A:

You have the following information for Stock A and Stock B:

Expected rate of return

Stock A: .12

Stock B: .06

Standard deviation:

Stock A: .9

Stock B: .5

Correlation between the two stocks: .80

If you invest $600 and $400 in Stock A and Stock B respectively, what is the standard deviation of the portfolio?

The answer is .7102

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