Use the following data to answer Question 4 and 5.

A portfolio was created by investing 25 percent of the funds in asset A (standard deviation=15 percent) and the balance of the funds in asset B (standard deviation=10 percent).

4) If the correlation coefficient is 0.75, what is the portfolio's standard deviation?

a. 11.2%

b. 10.6%

c. 12.4%

d. 15.0%

5) If the correlation coefficient is -0.75, what is the portfolio's standard deviation?

a. 2.8%

b. 4.2%

c. 5.3%

d. 10.6%