Following are estimates of the standard deviations and correlation coefficients for three stocks. a. If a portfolio

Question:

Following are estimates of the standard deviations and correlation coefficients for three stocks.

a. If a portfolio is composed of 20% of stock A and 80% of stock C, what is the portfolio's standard deviation?
b. If a portfolio is composed of 40% of stock A, 20% of stock B, and 40% of stock C, what is the portfolio's standard deviation?

Portfolio
A portfolio is a grouping of financial assets such as stocks, bonds, commodities, currencies and cash equivalents, as well as their fund counterparts, including mutual, exchange-traded and closed funds. A portfolio can also consist of non-publicly...