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Business, 31.10.2021 03:30 kendallnowell18

Suppose you invest 70% of your portfolio in Coca Cola and the remainder in Pepsi. The expected dollar return on your Coca Cola investment is 14.1% and on Pepsi is 10.0%. The standard deviation of returns was 21% for Coca Cola and 17% for Pepsi. Assume a correlation coefficient of 0.8. Calculate the portfolio standard deviation.

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Suppose you invest 70% of your portfolio in Coca Cola and the remainder in Pepsi. The expected dolla...

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