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Can you please provide the explanation and formula to get the correct answer? Thanks, Based on the following information for the IMM stock and the

image text in transcribedCan you please provide the explanation and formula to get the correct answer?

Thanks,

Based on the following information for the IMM stock and the market portfolio, what is the diversifiable proportion for the stock? IMM stock: Standard deviation: 8 Market portfolio: Standard deviation: 4 Correlation between the stock and the market portfolio: .8 Select one: a. 45% b. 36% c. 43% d. 39% The correct answer is: 36%

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