Question: MSFT has an expected return E(x) of 0.24 and a standard deviation sigma of 0.23 WMT has an expected return E(x) of 0.11 and a

MSFT has an expected return E(x) of 0.24 and a standard deviation sigma of 0.23

WMT has an expected return E(x) of 0.11 and a standard deviation sigma of 0.15

The correlation between MSFT and WMT is 0.55

Compute the standard deviation of the portfolio if you invest a fraction 0.53 into MSFT and the rest into WMT.

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