15) An investor puts 50% of his money into stock X and 50% of his money...
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15) An investor puts 50% of his money into stock X and 50% of his money into stock Y. Stock X has a standard deviation of 40%. Stock Y has a standard deviation of 30%. The correlation between these two stocks is 0.9. Will the standard deviation of this investor's portfolio be greater than, less than, or equal to 35% ? 15) An investor puts 50% of his money into stock X and 50% of his money into stock Y. Stock X has a standard deviation of 40%. Stock Y has a standard deviation of 30%. The correlation between these two stocks is 0.9. Will the standard deviation of this investor's portfolio be greater than, less than, or equal to 35% ?
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