You are considering two stocks with the following characteristics: Expected return of stock 1 (1)...
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You are considering two stocks with the following characteristics: Expected return of stock 1 (1) = 0.17, Expected return of stock 2 (2) = 0.04, Standard deviation of stock 1's returns ( 1) = 0.09, Standard deviation of stock 2's returns ( 2) = 0.03, and Covariance between the rates of returns of stock 1 and stock 2 (21 or 21) = 0.06. If you invest 0.17 percent of your total investment on stock 1 and 0.83 percent on stock 2, what would be the standard deviation of the portfolio consisting of these two stocks?
Please show me how to do this in excel with all the formulas visable, thank you!
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