Suppose Stock M Has an Expected Return of 10%, a Standard

Multiple Choice

Suppose Stock M has an expected return of 10%, a standard deviation of 15%, and a Beta of 0.6 while Stock N has an expected return of 20%, a standard deviation of 25% and a beta of 1.04, and the correlation between the two stocks is 0.50. What is the standard deviation for a portfolio with 80% invested in Stock M and 20% invested in Stock N?

A) 13.2%
B) 15.1%
C) 17.3%
D) 21.5%