Determine the risk of a portfolio

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Reference no: EM131338751

Two securities have the following characteristics:

	Security A	Security B
Expected Return	15%	12%
Standard Deviation	4%	6%
Beta	0.90	-0.25

Furthermore, the correlation of returns between the securities is -1.0. Determine the risk (standard deviation) of a portfolio consisting of equal proportions of securities A and B.

Reference no: EM131338751

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