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Your client has his retirement portfolio allocated with 80% in an index fund designed to replicate S&P500 returns and 20% in an index fund replicating

Your client has his retirement portfolio allocated with 80% in an index fund designed to replicate S&P500 returns and 20% in an index fund replicating Nasdaq market returns. S&P500 returns have an annual standard deviation of 24%, Nasdaq returns have standard deviation of 32%, and the correlation between the two market returns has historically been 0.85. Given this information, what is the expected standard deviation of your client's portfolio?

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