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Standard deviation of the resulting portfolio

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Stock A has an expected return of 10% and a standard deviation of its return of 21%. You have $0.3 million to invest. You further borrow $0.7 million at the risk-free. What is the standard deviation of the resulting portfolio that borrows $0.7 million at the risk-free rate of 3% and invests $1 million in Stock A?

Reference no: EM133111850

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