Multiple Choice
Stock A has a standard deviation of 15 percent per year and stock B has a standard deviation of 21 percent per year. The correlation between stock A and stock B is .32. You have a portfolio of these two stocks wherein stock B has a portfolio weight of 60 percent. What is your portfolio standard deviation?
A) 14.87 percent
B) 15.59 percent
C) 16.91 percent
D) 17.45 percent
E) 18.03 percent
Correct Answer:
Verified
Correct Answer:
Verified
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