Question: Problem 15 Intro The return on Visa stock has a standard deviation of 28% and the return on Walmart stock has a standard deviation of

Problem 15

Intro

The return on Visa stock has a standard deviation of 28% and the return on Walmart stock has a standard deviation of 16%. Their correlation is 0.54.

Attempt 1/10 for 10 pts.

Part 1

If you invest 80% in Visa and 20% in Walmart, what is the variance of the portfolio?

Attempt 1/10 for 6 pts.

Part 2

What is the standard deviation of the portfolio?

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