14.) One stock has a standard deviation of 20%, and another has a standard deviation of 40%. The correlation coefficient is 0.3. The standard deviation
14.) One stock has a standard deviation of 20%, and another has a standard deviation of 40%. The correlation coefficient is 0.3. The standard deviation of a portfolio that invests 50% in each of the two stocks equals ________.
a. 30.0%
b. 26.5%
c. 6.2%
d. 24.9%
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Authors: Mike E. Miles, Laurence M. Netherton, Adrienne Schmitz
5th Edition
0874203430, 978-0874203431
