Your current portfolio has a value o

$30,000, with an expected retum of 15%, and a

standard deviation of 20%.

You decide you want to purchase $6

.000 worth of stock

XYZ, which has an expected return of 13%. a standard deviation of 30%, and is

perfectly negatively correlated to your current portfolio. What will be your new

portfolio's standard deviation after the addition of XYZ? (Please retain at least 4

decimal places in your calculations.)

lemp

a

11.7%

b

5.3%

O c. 20.7%

d.

13.2%

e

14.6%