Calculate the expected standard deviation of the portfolio

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An investor wishes to construct a portfolio consisting of a TD% allocation to a stock index and a 3U% allocation to a risk free asset. The return on the risk-free asset is 4.5% and the expected return on the stock index is 12%. The standard deviation of returns on the stock index is 12%. The standard deviation of returns on the stock index is 6%. Calculate the expected standard deviation of the portfolio.

Reference no: EM133003605

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