Stock X Has a Standard Deviation of Return of 10

Multiple Choice

Stock X has a standard deviation of return of 10 percent. Stock Y has a standard deviation of return of 20 percent. The correlation coefficient between the two stocks is 0.5. If you invest 60 percent of your funds in stock X and 40 percent in stock Y, what is the standard deviation of your portfolio?

A) 10.3 percent
B) 21.0 percent
C) 12.2 percent
D) 14.8 percent