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You invest 79 of your money in Stock A and the rest in Stock B. The standard deviation of annual returns is 50 for Stock

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You invest \79 of your money in Stock A and the rest in Stock B. The standard deviation of annual returns is \50 for Stock A and \50 for Stock B. The correlation between the two stocks is 0.3 . By how many percentage points does diversifying between these two stocks reduce your risk? Go out three decimals - for example, write \5.6 as .056 . You invest \79 of your money in Stock A and the rest in Stock B. The standard deviation of annual returns is \50 for Stock A and \50 for Stock B. The correlation between the two stocks is 0.3 . By how many percentage points does diversifying between these two stocks reduce your risk? Go out three decimals - for example, write \5.6 as .056

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