Question: You hold one stock ( A ) with a standard deviation of 2 0 % . You are thinking about buying another stock ( B

You hold one stock (A) with a standard deviation of 20%. You are thinking about buying another stock (B) with a standard deviation of 30%. You will hold these two stocks in a portfolio with 50% of your money invested in each. Stock B has a correlation coefficient of 0.2 with stock A. Calculate the standard deviation of the portfolio.

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