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A portfolio consists of two stocks (stock Orange and stock Mango) having the following characteristics:...

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Finance

A portfolio consists of two stocks (stock Orange and stock Mango) having the following characteristics:

image

If stock Orange and stock Mango are perfectly negatively correlated (i.e., correlation coefficient between these two stocks = -1.0), what is the standard deviation of this portfolio?

Stock Mango $90 Price # of shares in portfolio Return Standard deviation of returns Stock Orange $45 600 10% 15% 200 15% 25%

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