Question: write the answer in 2-3 steps with clear hand writing or typed answer 3. Stock A has an expected return of 5% and standard deviation

write the answer in 2-3 steps with clear hand writing or typed answer

write the answer in 2-3 steps with clear hand

3. Stock A has an expected return of 5% and standard deviation of 10%. Stock B has an expected return of 10% and standard deviation of 15%. The correlation between the two stocks' returns is 0.70. If you wanted to form a portfolio of these two stocks and wanted that portfolio to have an expected return of 8%, what weights would you put on each stock? Show your work ("algebra"). What would be the standard deviation of this portfolio

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