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a. 9.79% b. 11.53% c. 18% d. none of the above 2. 3. d. the risk of the portfolio is equal to 7 percent I

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a. 9.79% b. 11.53% c. 18% d. none of the above 2.

image text in transcribed

3.

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d. the risk of the portfolio is equal to 7 percent

I have decided to invest my money in just two stocks: one has a standard deviation of 20% and I am investing 25% of my money in it. The other has a standard deviation of 10% and I am investing the rest of my money in it. If the correlation coefficient of these two stocks is +0.5, my portfolio standard deviation would be

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