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    Calculating the standard deviation in the given case

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    Aquaman stock has exhibited a standard deviation in returns of 0.7, whereas Green Lantern stock has exhibited a standard deviation of 0.8. The correlation coefficient between the stock returns is 0.1. What is the standard deviation of a portfolio composed of 70% Aquaman and 30% Green Lantern?

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    Weight of Aquaman=p1=70%
    Weight of Green Lantern=p2=30%
    Standard deviation of Aquaman=sigma 1=0.7
    Standard ...

    Solution Summary

    Solution describes the steps to calculate the standard deviation of returns in the given case.