Question
Emma Driscoll has 80% invested in Stock A with the rest invested in Stock B. The variance of Stock A is 1% and the standard
Emma Driscoll has 80% invested in Stock A with the rest invested in Stock B. The variance of Stock A is 1% and the standard deviation of Stock B is 14%. The correlation between Stock A and Stock B is 0.93. Calculate the standard deviation of the portfolio. (3 Marks) Please provide your answer as a decimal to 4 decimal places.
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Financial Accounting Tools for Business Decision Making
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
5th Edition
9781118560952, 1118560957, 978-0470239803
