Question
A portfolio has 50% of its value in IBM shares and the rest in Microsoft (MSFT). The volatility of IBM and MSFT are 40% and
A portfolio has 50% of its value in IBM shares and the rest in Microsoft (MSFT). The volatility 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?
Group of answer choices
21.10%
20.04%
23.20%
18.99%
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Financial Management Core Concepts
Authors: Raymond M Brooks
3rd edition
133866696, 978-0133866698
