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

question 184

Essay

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} Compute the standard deviation of the returns on the portfolio assuming that the two stocks' returns are uncorrelated.

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Definitions:

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