Stock A has a standard deviation of 7%. Stock B has a standard deviation of 12%. The
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Question:
Stock A has a standard deviation of 7%. Stock B has a standard deviation of 12%. The correlation coefficient between the two stocks' returns is 0.4071. What is the risk (standard deviation) for an equally weighted portfolio of stocks A and B?
a. 7.639%b. 45.65%
c. 2.854%
d. 9.54%
e. 8.08%
Related Book For
Database Systems Design Implementation and Management
ISBN: 978-1285196145
11th edition
Authors: Carlos Coronel, Steven Morris
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