portfolo P consists of 2 stocks 50% is invested on stock A and 50% is invested in stock B. stock A has a standard deviation of 25% and a beta of 1.2, and stock B has a standard deviation of 35% and a beta od 0.80. the correlation between thses stocks is 0.4.
what is the standard deviation of portfolio P?
what is the beta of plrtfolio P ?
which stock is reskier to a diversified investor?
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