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Elizabeth's Portfolio
Elizabeth Has Decided to Form a Portfolio by Putting

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Elizabeth's Portfolio
Elizabeth has decided to form a portfolio by putting 30% of her money into stock 1 and 70% into stock 2.She assumes that the expected returns will be 10% and 18%,respectively,and that the standard deviations will be 15% and 24%,respectively.
-{Elizabeth's Portfolio Narrative} Describe what happens to the standard deviation of the portfolio returns when the coefficient of correlation ρ\rho decreases.


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