Question
Mr. Jones has a 2-stock portfolio with a total value of $550,000. $185,000 is invested in Stock A and the remainder is invested in Stock
Mr. Jones has a 2-stock portfolio with a total value of $550,000. $185,000 is invested in Stock A and the remainder is invested in Stock B. If standard deviation of Stock A is 20.95%, Stock B is 9.55%, and correlation between Stock A and Stock B is 0.50, what would be the expected risk on Mr. Jones portfolio (standard deviation of the portfolio return)? Calcualte with at least 4 decimal places and round your answer to two decimal places. For example, if your answer is $345.6671 round as 345.67 and if your answer is .05718 or 5.7182% round as 5.72.
Group of answer choices
6.92%
6.72%
5.51%
7.80%
7.59%
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