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A portfolio is comprised of two stocks, A and B. Stock A has a standard deviation of return of 5% while stock B has a
A portfolio is comprised of two stocks, A and B. Stock A has a standard deviation of return of 5% while stock B has a standard deviation of return of 15%. The correlation coefficient between the returns on A and B is .2778. Stock A comprises 40% of the portfolio while stock B comprises 60% of the portfolio. The variance of return on the portfolio is __________.
A. .0035
B. .0055
C. .0075
D. .0095
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