In a two-stock capital market the capitalization of stock x, Ask an Expert

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In a two-stock capital market the capitalization of stock X is twice that of stock Y (this should tell you what the weights of stocks X and Y are in the economy). The standard deviation of excess returns on stock X is 35% and 55% on stock Y. the correlation coefficient between the excess returns is 0.75. What is the standard deviation of the market portfolio?

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Financial Management, Finance

Category:- Financial Management
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