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Annual returns of three stocks are given below. Two of them (Air America and Air Brazil) are airline stocks and one (Star Oil) is an

Annual returns of three stocks are given below. Two of them (Air America and Air Brazil) are airline stocks and one (Star Oil) is an oil stock. In general, when oil prices go up, airline company stocks go down and oil company stocks go up.

YEAR Air America Air Brazil Star Oil
2016 -28% 9% -2%
2017 30% -28% -5%
2018 7% 7% 9%
2019 -5% -2% -28%
2020 -2% -5% 30%
2021 9% 30% 7%

Create a porfolio (to diversify risk) by mixing 50% of Air America and 50% of Star Oil stocks. How much is the portfolio's risk (i.e., annual standard deviation)? Notice that risk goes down in a portfolio. Enter your answer in the following format: 0.1234 Hint: Answer is between 0.1232 and 0.1550

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