You’ve decided to build a portfolio of two stocks, AirBNB &…
You’ve decided to build a portfolio of two stocks, AirBNB & Target. You estimate that AirBNB has an expected return of 12% with a volatility of 22%, Target has an expected return of 8% with a volatility of 16%, and the two stocks will have a correlation of 0.3. Based on these assumptions, which of the following is not true if you invest 75% in AirBNB and 25% in Target?
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