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QUESTION 12 The investor is presented with the two following stocks: Expected Return Standard Deviation Stock A 10% 30% Stock B 20% 60% Assume that

QUESTION 12

The investor is presented with the two following stocks:

Expected Return

Standard Deviation

Stock A

10%

30%

Stock B

20%

60%

Assume that the correlation coefficient between the stocks is -1. What is the standard deviation of the return on the portfolio that invests 30% in stock A?

A.
26%

B.
49%

C.
30%

D.
33%

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