Given the returns of two stocks J and K in the table below over the last 4 years. Find the standard deviation of holding a portfolio of 60% of stock J and 40% in stock K over the next 4 years assuming 0.85 Correlation coefficient.

	Stock J	Stock K
2010	10%	9%
2011	12%	8%
2012	13%	10%
2013	17%	17%

Select one:

a. 1.70%

b. 3.27%

c. 1.16%

d. 1.34%

Incorrect

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The correct answer is: 3.27%