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Sally has invested one-quarter of her money in Facebook stock, one-quarter in treasury bonds and...

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Accounting

Sally has invested one-quarter of her money in Facebook stock, one-quarter in treasury bonds and the remainder in Ford Motor Company stock. The standard deviation is 20 percent for Ford and 80 percent for Facebook. Suppose the correlation between Facebook and Ford is 0.25. Assume zero correlation between bonds/stocks and zero variance for the treasury. What is the standard deviation of Sallys portfolio

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