Standard deviation of expected return of a portfolio

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Reference no: EM132053100

The stock market of country A has an expected return of 5 percent, and a standard deviation of expected return of 8 percent. The stock market of country B has an expected return of 15 percent and a standard deviation of expected return of 10 percent. Assume that the correlation of expected return between security A and B is 0.2. Calculate the standard deviation of expected return of a portfolio that has half of its money invested in A and half in B.

Reference no: EM132053100

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