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    Portfolio Management

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    "You own a portfolio that has 80% invested in asset A, and 20% invested in asset B. Asset A s standard deviation is 10% and asset B s standard deviation is 25%. The correlation coefficient between the two assets is -0.8. The expected return on the portfolio is 15%. The standard deviation for this portfolio is closest to:"

    Answer
    0.25%
    5.00%
    4.36%
    5.38%
    0.29%

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    https://brainmass.com/business/business-management/portfolio-management-447422

    Solution Preview

    "You own a portfolio that has 80% invested in asset A, and 20% invested in asset B. Asset A s ...

    Solution Summary

    Solution calculates the portfolio standard deviation in the given case.

    $2.19

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