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What is the covariance between stocks a and b

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Reference no: EM132964438

The following information is available.

                                      Stock A                    Stock B

Expected return               24%                   35%

Standard deviation             12%                    18%

Coefficient of correlation 0.60

Problem a. What is the covariance between stocks A and B ?

Problem b. What is the expected return and risk of a portfolio in which A and B are equally weighted?

Reference no: EM132964438

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