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What was the standard deviation of the portfolio returns

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Problem 1: You have decided to set up a portfolio. You will invest 40% of your wealth in 123 Inc and 60% of your wealth in 456 Inc. Information regarding these stocks is shown in the table below. Based on this information what was the standard deviation of the portfolio's returns?

                                                123 Inc               456 Inc

Expected Return                             14.0%                   8.70%

Standard Deviation                           28%                       16%

Correlation coefficient of 123 with 456 0.3

a) 17.42%

b) 16.80

c) 17.73%

d) 17.11%

e) None of the above

Reference no: EM132623293

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