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The estimated volatility of a domestic asset is d = 15 percent (annualized standard deviation...

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Accounting

The estimated volatility of a domestic asset is d = 15 percent (annualized standard deviation of returns). A foreign asset has a volatility of f = 18 percent, and a correlation of p = 0.5 with the domestic asset. What is the volatility of a portfolio invested 80 percent in the domestic asset and 20 percent in the foreign asset?

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