Multiple Choice
Stock X has a standard deviation of return of 10%. Stock Y has a standard deviation of return of 20%. The correlation coefficient between stocks is 0.5. If you invest 60% of the funds in stock X and 40% in stock Y, what is the standard deviation of a portfolio?
A) 10%
B) 20%
C) 12.2%
D) None of the above
Correct Answer:
Verified
Correct Answer:
Verified
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