Stock a Has a Standard Deviation of 20 Percent Per

Multiple Choice

Stock A has a standard deviation of 20 percent per year and stock B has a standard deviation of 15 percent per year.The correlation between stock A and stock B is .35.You have a portfolio of these two stocks wherein stock B has a portfolio weight of 40 percent.What is your portfolio variance?

A) 0.02022
B) 0.02156
C) 0.02239
D) 0.02247
E) 0.02304