What is the beta of portfolio p

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Portfolio P consists of two stocks: 50% is invested in Stock A and 50% is invested in Stock B. Stock A has a standard deviation of 25% and a beta of 1.2, and Stock B has a standard deviation of 35% and a beta of 0.80. The correlation between these stocks is 0.4. What is the standard deviation of Portfolio P? Less than 30% More than 30%

What is the beta of Portfolio P? Which stock is riskier to a diversified investor?

Reference no: EM132389556

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