Question: Consider the data provided in the table below for a portfolio of assets A and B. The portfolio weights and variances are given in the

Consider the data provided in the table below for a portfolio of assets A and B. The portfolio weights and variances are given in the table. The variances are expressed in decimal form. For example, if the standard deviation is 50%, then the variance is 0.52 = 0.25. The correlation of returns of the two assets is 0.77.

What is the standard deviation of the portfolio?

Asset A

Asset B

Portfolio Weights

0.35

0.65

Variances

0.3364

00.3025

Standard Deviation

0.58

0.55

The standard deviation of the portfolio is ___. (Enter your answer in decimal form. Round to four decimal places.)

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