What is this portfolios total risk

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Reference no: EM131456252

A two-asset portfolio is specified as follows:

wA=0.4; rA= 5%; σA=8%

wB=0.6; rB =8%; σB=10%

a) what is this portfolio’s total risk if these two assets are uncorrelated (independent)?

b) what is this portfolio’s total risk if the correlation coefficient between these two assets’ is 0.7.

Reference no: EM131456252

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