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You put half of your money in a stock portfolio that has an expected return of 14% and a standard deviation of 34%. You put
You put half of your money in a stock portfolio that has an expected return of 14% and a standard deviation of 34%. You put the rest of your money in a risky bond portfolio that has an expected return of 6% and a standard deviation of 13.2%. The stock and bond portfolios have a correlation of 0.83. What is the standard deviation of the resulting portfolio?
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