A portfolio is composed of two stocks, A and B. Stock A has a standard deviation of
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Question:
A portfolio is composed of two stocks, A and B. Stock A has a standard deviation of return of 20%, while stock B has a standard deviation of return of 25%. The correlation coefficient between the returns on A and B is .35. Stock B comprises 35% of the portfolio. The standard deviation of the return on this portfolio is _________. |
19.76%
3.25%
5.41%
12.41%
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