The correlation coefficient between the returns on a and b


You are considering adding a new stock, A, to the portfolio B. Stock A has a standard deviation of return of 35% while portfolio B has a standard deviation of return of 15%. The correlation coefficient between the returns on A and B is 0.45. You already have 600,000 invested in portfolio B and you are going to invest 400,000 in Stock A. The standard deviation of the new portfolio is _________.

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Financial Management: The correlation coefficient between the returns on a and b
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