Question: Chapter 06 Practice Test Question 07 Calculating A Two Security Portfolio Standard Deviation An investor puts 80% 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 80% of their money in Stock 1 and the rest in Stock 2. Stock 1 has a standard deviation of 46% and Stock 2 has a standard deviation of 39%. The covariance between the two stocks is 0.095103. What is the portfolio's standard deviation? Multiple Choice O 40.99% O 41.47% O 38.63% o 44.78%

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