Question: The SD should be 14.39%, can you explain how it was achieved? Include the formula and calculation. You want to form a portfolio with two

$You want to form a portfolio with two stocks ( A ) and ( B ). These stocks have expected returns of ( E_{A}=10 % ) and$

The SD should be 14.39%, can you explain how it was achieved? Include the formula and calculation.

You want to form a portfolio with two stocks A and B. These stocks have expected returns of EA = 10% and EB 15% with standard deviations of A = 15% and B = 25%. The OB correlation coefficient between the two stocks is -0.3. =

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The formula for calculating the standard deviation of a portfolio is SD WA2A2 WB2B2 2WA... View full answer

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