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A portfolio has 40% of its value in IBM shares and the rest in Microsoft...

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Finance

A portfolio has 40% of its value in IBM shares and the rest in Microsoft (MSFT). The volatility of IBM and MSFT are 35% and 30%, respectively, and the correlation between IBM and MSFT is 0.2. What is the standard deviation of the portfolio?

Answer: 24.92%. Please show how to arrive at this answer.

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