Assume the standard deviation of stock A is 10% and the standard deviation of stock B is

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Assume the standard deviation of stock A is 10% and the standard deviation of stock B is 50%. You have bought $10,000 worth of stock A and $30,000 worth of stock B. If the correlation coefficient between the two stocks is -0.05 (negative!), what is the standard deviation of this two-stock portfolio?

Posted Date: May 13, 2024 06:15 AM

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Assume the standard deviation of stock A is 10% and the standard deviation of stock B is

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To calculate the standard deviation of the twostock portfolio we can use the formula for the standar... View the full answer

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