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Consider the following information for two stocks.Assume that portfolio XY is 50% invested in stock X and 50% in stock Y. Year Stock X Stock

Consider the following information for two stocks.Assume that portfolio XY is 50% invested in stock X and 50% in stock Y.

YearStock XStock YPortfolio XY

201011%21%

201137%(38) %

2012(21) %48%

201326%16%

201413%24%

Find the portfolio average return and standard deviation.

Answers:

E.13.70% and 8.42%

My Question is how is the answer of 8.42% arrived at for standard deviation to the above problem? Can you show me the steps?

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