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A portfolio is composed of two stocks, A and B. Stock A has a standard deviation of return of 25%, while stock B has a standard deviation of return of 19%. Stock A comprises 70% of the portfolio, while stock B comprises 30% of the portfolio. If the variance of return on the portfolio is .045, the correlation coefficient between the returns on A and B is _________.

A) .390

B) .106

C) .558

D) .167

Financial Management, Finance

  • Category:- Financial Management
  • Reference No.:- M91608413

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