Question: Here are returns and standard deviations for four investments. Return (%) Standard Deviation (%) Treasury bills 5.0 0 Stock P 8.0 15 Stock Q 16.0

Here are returns and standard deviations for four investments.

Return (%) Standard Deviation (%)
Treasury bills 5.0 0
Stock P 8.0 15
Stock Q 16.0 29
Stock R 21.0 26

Calculate the standard deviations of the following portfolios.

  1. 50% in Treasury bills, 50% in stock P.
  2. 50% each in Q and R, assuming the shares have:

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