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30 - Weight of Microsoft (W2) = 0.70 - Volatility of IBM (S1) = 35% - Volatility of Microsoft (S2) = 30% - Correlation between IBM and Microsoft = 0.5 Weighted Variance = (W1^2 * S1^2) + (W2^2 * S2^2) + 2 * W1 * S1 * W2 * S2 * Correlation Weighted Variance = Show more…
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