Question: Expected Return Stock 1: 10% Volatility Stock 1: 20% Expected Return Stock 2: 12% Volatility Stock 2: 30% Correlation Between Stock 1 and Stock 2:

Expected Return Stock 1: 10%

Volatility Stock 1: 20%

Expected Return Stock 2: 12%

Volatility Stock 2: 30%

Correlation Between Stock 1 and Stock 2: 1/2

Risk Free Rate: 3%

What is the Volatility of an equally weighted portfolio of Stock 1 and Stock 2?

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