Two securities have the following characteristics:

Security A Security B

Expected return $32\%17\%$

Standard deviation $28\%34\%$

Proportion $($Weight$)55\%45\%$

Beta $1\mathrm{.}20\mathrm{.}25$

Correlation Coefficient $0\mathrm{.}85$

Determine the risk $($standard deviation$)$ of the portfolio with Securities A and B$.$

Question $1$Answer

a$.$

$31\mathrm{.}83\%$

b$.$

$34\mathrm{.}80\%$

c$.$

$25\mathrm{.}25\%$

d$.$

$29\mathrm{.}53\%$