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Aquaman Stock Has Exhibited a Standard Deviation in Stock Returns

Question 71

Multiple Choice

Aquaman Stock has exhibited a standard deviation in stock returns of 0.7, whereas Green Lantern Stock has exhibited a standard deviation of 0.8. The correlation coefficient between the stock returns is 0.1. What is the standard deviation of a portfolio composed of 70 percent Aquaman and 30 percent Green Lantern? Round the answer to five decimal points.


A) 0.32122
B) 0.54562
C) 0.56676
D) 0.75000

Correct Answer:

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