Question
Both stock A and stock B have return volatilities (standard deviations) of 20%. If the two stocks are uncorrelated (i.e. have zero correlation), the return
Both stock A and stock B have return volatilities (standard deviations) of 20%. If the two stocks are uncorrelated (i.e. have zero correlation), the return volatility (standard deviation) of an equally-weighted portfolio (50% each) is close to _____.
- A. 20.00%
- B. 16.67%
- C. 15.00%
- D. 14.14%
- E. 12.50%
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Introductory Course On Financial Mathematics
Authors: M V Tretyakov
1st Edition
1908977388, 978-1908977380
