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Stock a has a standard deviation of 25% per year and Stock b has a standard...

Stock a has a standard deviation of 25% per year and Stock b has a standard deviation of 20% per year. The correlation between Stock a and Stock b is .30. You know you have a portfolio of these two stocks wherein Stock b has a portfolio weight of 40%. What is your portfolio variance?

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•Г. ба = 25 60 = 2 o •. 1 = • Зо wa - • во обзочо Variance w.- 4 w* * + 2wotos xsa se * x25*+ •40*720*+ 2х - бох:4o X• 30 Х25

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