Multiple Choice
Suppose a portfolio has 55 percent of its assets invested in Stock S with a standard deviation of 40 percent and the remainder in Stock T with a standard deviation of 12 percent. If the correlation between the two stocks is 0.22, what is the standard deviation of the portfolio?
A) 21.05%
B) 22.94%
C) 23.78%
D) 24.68%
E) 25.56%
Correct Answer:
Verified
Correct Answer:
Verified
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