Question: You have decided to create a portfolio with two assets: stock X and stock Y. You invest 20% of your funds in X and 80%
You have decided to create a portfolio with two assets: stock X and stock Y. You invest 20% of your funds in X and 80% of your funds in stock Y. The standard deviation of X is 30% and the standard deviation of Y is 40%. The two stocks have a correlation coefficient of -0.5. What is the portfolio's standard deviation?
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