Question: You create a portfolio using two stocks A and B with correlation coefficient equal to 0 . 6 . You invest 4 0 % in

You create a portfolio using two stocks A and B with correlation coefficient equal to 0.6.
You invest 40% in A that has expected return 10% and variance 0.01
You invest 60% in B that has expected return 20% and variance 0.02
What is the standard deviation of the portfolio?

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