Multiple Choice
Suppose you observed the following data on two securities: Mars and Venus:
You short sold 200 shares of Mars at $20 per share and purchased 400 shares of Venus at $25 per share to increase the possible return on the portfolio.The correlation between the securities is 0.30.What is the standard deviation of the portfolio?
A) 7.06%
B) 26.56%
C) 32.45%
D) 56.96%
Correct Answer:
Verified
Correct Answer:
Verified
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