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Problem:

Suppose Stock X offers the return of 15% with a standard deviation of 12%; Stock Y offers the return of 24% with a standard deviation of 26%. These two stocks have the correlation coefficient of -0.5.

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Question: If you invest 40% in stock X and the rest in Stock Y, what is your portfolio return? What is your portfolio standard deviataion?

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M91169794

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