Narrative Two

Given the following information about two assets:

Expected Return of Asset 1 12.00%

Standard Deviation of Asset 1 8.00%

Expected Return of Asset 2 16.00%

Standard Deviation of Asset 2 15.00%

Calculate the standard deviation of a two-asset portfolio consisting of these two assets when w =0.75 and

1

the covariance between Asset 1's return and Asset 2's return is -0.009.

Select one:

a. 0.0367

b. 0.0404

c. -1.00

d. -0.012

e. -0.75

which is the correct answer from above no need to show your work