Assume that the Monroes want to invest $10,000. They decide to invest $7,000 in Portfolio A with the remainder in the S&P 500. Changes in the S&P 500 account for 25% of the returns for Portfolio A. If Portfolio A has a standard deviation of 20% and the S&P 500 has a standard deviation of 11.5%. 

What is the standard deviation of the combined $10,000 portfolio?

Answer rating: 100% (QA)

To find the standard deviation of the combined portfolio we need to use the formula for p... View the full answer