Question: Chapter 06 Practice Test Question 07 Calculating A Two Security Portfolio Standard Deviation An investor puts 85% of their money in Stock 1 and the

Chapter 06 Practice Test Question 07 Calculating A Two Security Portfolio

Chapter 06 Practice Test Question 07 Calculating A Two Security Portfolio Standard Deviation An investor puts 85% of their money in Stock 1 and the rest in Stock 2. Stock 1 has a standard deviation of 48% and Stock 2 has a standard deviation of 40%. The covariance between the two stocks is 0.094116. What is the portfolio's standard deviation? Multiple Choice 43.43% 49.18% 42.00%

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