7. You are creating a portfolio of Stock X and Stock W. You are investing...
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7. You are creating a portfolio of Stock X and Stock W. You are investing $3,000 in Stock W and $4,000 in Stock X. Remember that the expected return and standard deviation of Stock W is 9% and 13.15% respectively. The expected return and standard deviation of Stock X is 8% and 10.65% respectively. The correlation coefficient between W and X is 0.55.
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