What is the standard deviation of the market portfolio

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10. In a two-stock capital market the capitalization of stock X is twice that of stock Y (this should tell you what the weights of stocks X and Y are in the economy). The standard deviation of excess returns on stock X is 35% and 50% on stock Y. the correlation coefficient between the excess returns is 0.75.
a. What is the standard deviation of the market portfolio?
b. What is the beta of each stock?

Reference no: EM13324649

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