Correlation coefficient between the returns on a and b

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A portfolio is composed to two stocks, A and B. Stock A has a standard deviation of return of 25% while stock B has a standard deviation of return of 5%. Stock A comprises 20% of the portfolio while stock B comprises 80% of the portfolio. If the variance of returns on the portfolio is 0.0050, the correlation coefficient between the returns on A and B is ____________.

Reference no: EM131052588

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