Jessica has a two-stock portfolio with 30% invested in Stock A. The variance of Stock A is 0.10 and the standard deviation of Stock B is 15%. The covariance between Stock A and Stock B is 0.07 Calculate the standard deviation of the portfolio.

Question: Calculate the correlation between the two stocks. Please provide your answer to 6 decimal places.

Question: Mike Menzes has a portfolio made up of 2 different stocks. He decides to increase his portfolio size by $1m of stock C. What is the expected impact of his decision on the variance of his portfolio return? (2 Marks)