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You Have Decided to Create a Portfolio with Two Assets

question 17

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You have decided to create a portfolio with two assets: stock X and stock Y.You invest 20% of your funds in X and 80% of your funds in stock Y.The standard deviation of X is 30% and the standard deviation of Y is 40%.The two stocks have a correlation coefficient of - 0.5.What is the portfolio's standard deviation?


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