Question: Here are the expected returns on two stocks: Returns Probability X Y 0.1 20% 10% 0.8 20 15 0.1 40 20 If you form a

Here are the expected returns on two stocks:

Returns

Probability

X

Y

0.1

20%

10%

0.8

20

15

0.1

40

20

If you form a 50-50 portfolio of the two stocks, what is the portfolio's standard deviation?

a.

16.5%
b.

10.5%
c.

20.0%
d.

13.4%
e.

8.1%

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