Both Starcents and Jpod have the same return standard deviation of 20 percent, and Starcents and Jpod

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Both Starcents and Jpod have the same return standard deviation of 20 percent, and Starcents and Jpod returns have a correlation of −1. You invest half your funds in Starcents and the other half in Jpod. What is the return standard deviation for your portfolio?

a. 20 percent

b. 14.14 percent

c. 10 percent

d. 0 percent.

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Fundamentals Of Investments Valuation And Management

ISBN: 9781266824012

10th Edition

Authors: Bradford Jordan, Thomas Miller, Steve Dolvin

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