A portfolio has 40% of its value in IBM shares and the rest in Microsoft (MSFT). The
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Question:
A portfolio has 40% of its value in IBM shares and the rest in Microsoft (MSFT). The standard deviations of IBM and MSFT are 40% and 30%, respectively, and the correlation between IBM and MSFT is -0.3. What is the standard deviation of the portfolio?
A.19.95%
B.18.65%
C.22.17%
D.20.18%
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