Multiple Choice
A portfolio is composed of two stocks,A and B. Stock A has a standard deviation of return of 35% while stock B has a standard deviation of return of 15%. The correlation coefficient between the returns on A and B is 0.45. Stock A comprises 40% of the portfolio while stock B comprises 60% of the portfolio. The standard deviation of the return on this portfolio is _________.
A) 23.00%
B) 19.76%
C) 18.45%
D) 17.67%
Correct Answer:
Verified
Correct Answer:
Verified
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