Problem $11$

Intro

The return on Visa stock has a standard deviation of $28\%$ and the return on Walmart stock has a standard

deviation of $19\%.$ Their correlation is $0\mathrm{.}23.$

Part $1$

Attempt $\frac{2}{10}$ for $9\mathrm{.}5$ pts$.$

If you invest $60\%$ in Visa and $40\%$ in Walmart, what is the variance of the portfolio?

Part $2$

Attempt $\frac{1}{10}$ for $10$ pts$.$

What is the standard deviation of the portfolio?