Question: Security As returns have a standard deviation of 4%. Bs have a standard deviation of 8%. The covariance between their returns is +16. A portfolio

Security As returns have a standard deviation of 4%. Bs have a standard deviation of 8%. The covariance between their returns is +16. A portfolio is constructed with 60% of the funds in A and 40% of the funds in B.

What is the risk of the portfolio?

	A.	3.64%
	B.	4.45%
	C.	5.60%
	D.	4.87%

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