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You own a portfolio with two stocks: Apple and Facebook. 30% of the investment is in Apple while 70% is in Facebook.Through statistical work you
You own a portfolio with two stocks: Apple and Facebook. 30% of the investment is in Apple while 70% is in Facebook.Through statistical work you obtain the information below. What is the standard deviation of your entire portfolio?
std_deviation of Apple= | 1.2 | |
std_deviation of Facebook= | 2 | |
Correlation of Apple and Facebook= | 0.045 |
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