Question: The expected return and standard deviation for IBM and MSFT are provided below. Calculate the STANDARD DEVIATION for a portfolio that is weighted 80% in

The expected return and standard deviation for IBM and MSFT are provided below. Calculate the STANDARD DEVIATION for a portfolio that is weighted 80% in IBM and 20% in MSFT if the rho between the two securities is -0.40.

Stock	ER	SD
IBM	17%	14%
MSFT	15%	14%

Options:

- 10.27%

- 16.7%

- 10.40%

- 15.42%

- none of the above

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