Shares in Acme and
BlueSky have standard deviations of return 40% and 30%,
respectively. You are contemplating a 60-40 portfolio
(respectively) in these shares, but do not know the
correlation. What would be standard deviation of
portfolio return if the correlation were 0? If it were 35%?
35%; 35%
7.3%; 9%
27%;30%
30%;27%
Shares in Acme and BlueSky have standard deviations of return 40% and 30%, respectively. You are contemplating a 60-40
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answerhappygod
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Shares in Acme and BlueSky have standard deviations of return 40% and 30%, respectively. You are contemplating a 60-40
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