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    Standard Deviation of a portfolio

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    Stock A has a standard deviation of return of 50%. Stock B has a standard deviation of return of 40%. The two stocks have a correlation of 60%. What is the standard deviation of return of a portfolio that is 25% Stock A and 75% Stock B?

    PLEASE REFER TO THE ATTACHED MS_WORD FILE, for details. thank you.

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    variance & standard deviation of a portfolio

    Here's the problem:

    Stock A has a standard deviation of return of 50%. Stock B has a standard deviation of return of 40%. The two stocks have a correlation of 60%. What is the standard deviation of return of a portfolio that is 25% Stock A and 75% Stock B?

    Here are the equations I have:

    ...

    Solution Summary

    The solution explains how to calculate the standard deviation of a two stock portfolio.

    $2.19

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