You are creating a portfolio of two stocks. The first one has a standard deviation of 35% and the second one has a standard deviation of 30%. The correlation coefficient between the returns of the two is 0.5. You will invest 30% of the portfolio in the first stock and the rest in the second stock. What will be the standard deviation of this portfolio's returns?

Answer rating: 100% (QA)

To calculate the standard deviation of the portfolios returns we can use the follow... View the full answer