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FInd Portfolio Risk
An investor is considering a two-asset portfolio. Stock A has an expected return of $4.50 per share with a standard deviation of $1.00, while stock B has an expected return of $3.75 with a standard deviation of $0.75. The covariance between the two stocks is -0.35. Find the portfolio risk if:
a) the stocks are weighted equally in the portfolio,
B) the amount of stock A is one-fourth as much as stock B
c) the amount of stock B is one-fourth as much as stock A
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