Question: Given the following: Expected return on Stock A .12 (12%) Standard deviation of return .1 Expected return on Stock B .20 (20%) Standard deviation of

Given the following:

  • Expected return on Stock A .12 (12%)
  • Standard deviation of return .1
  • Expected return on Stock B .20 (20%)
  • Standard deviation of return .6
  • Correlation coefficient of the returns on Stock A and Stock B .2

What is the standard deviation of the portfolio if 50% were invested in A and 50% were invested in B?

Type just the number rounded to three decimal places.

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