You know that assets 1 and 2 have the same standard deviation and that the correlation between their returns is 0.4. You observe that the portfolio with 30% invested in asset 1 and the rest in asset 2 has a standard deviation of 12.97%. What is the standard deviation of assets 1 and 2?

Answer rating: 100% (QA)

To calculate the standard deviation of assets 1 and 2 we can use the formula for the standard devia... View the full answer