Question: USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM Asset (A) Asset (B) E(R A ) = 16% E(R B ) = 10% ( A )

USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM

Asset (A) Asset (B)
E(RA) = 16% E(RB) = 10%
(A) = 9% (B) = 7%
WA = 0.5 WB = 0.5
COVA,B = 0.0009

Refer to Exhibit 6.6. What is the standard deviation of this portfolio?

a. 7.06%
b. 6.54%
c. 5.89%
d. 7.26%
e. 6.08%

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