Question: Problem 2.2 (15 pts) You are given the following information for two stocks: Stock Expected return Volatility A 0.23 0.32 B 0.19 0.22 A portfolio

Problem 2.2 (15 pts) You are given the following information for two stocks: Stock Expected return Volatility A 0.23 0.32 B 0.19 0.22 A portfolio is 35% invested in stock A and 65% invested in stock B. The beta of stock A with the portfolio is 0.7. The annual effective risk-free rate is 0.03. Find the correlation of stock A with the portfolio. Problem 2.2 (15 pts) You are given the following information for two stocks: Stock Expected return Volatility A 0.23 0.32 B 0.19 0.22 A portfolio is 35% invested in stock A and 65% invested in stock B. The beta of stock A with the portfolio is 0.7. The annual effective risk-free rate is 0.03. Find the correlation of stock A with the portfolio

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