question 1

Your portfolio consists of two stocks. You have $2000 in stock A and $8000 in stock B. The returns for stock A have a standard deviation of 20% and the returns for stock B have a standard deviation of 10%. The correlation coefficient between A and B is 0.1. What is your portfolio standard deviation?

Select one:

a.10.2%

b.11.2%

c.9.3%

d.6.8%

e.10.5%