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Calculate the standard deviation of return

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Reference no: EM132968208

Question - An investor invests 35 per cent of her funds in Company A's shares and the remainder in Company B's shares. The standard deviation of the returns on A is 15 per cent and on B is 10 per cent.

Calculate the standard deviation of return on the portfolio assuming the correlation between the returns on the two securities is:

1) +1.0

2) +0.8

3) 0

4) -0.8

Reference no: EM132968208

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