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Ashley wants to form a risky portfolio by investing half of her money in stocks and half in bonds. She puts half in a stock mutual fund that has an expected return of 17% and a standard deviation of 22%; and the rest in a corporate bond mutual fund that has an expected return of 13.5% and a standard deviation of 16.5%. The stock and bond funds have a correlation of -0.2. What is the standard deviation of Ashley's portfolio?

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Financial Management, Finance

Category:- Financial Management
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