Question 33 (1 point) Morgan is a financial advisor and he just received $10,000 from a client. Based on the client's risk tolerance, he plans to invest into two stocks only: Bridge Inc, and Water Corp. Specifically, 20% of money will be allocated to Bridge Inc., and the remaining 80% to Water Corp. Historical data shows that the standard deviation of returns is 25% and 8% for Bridge Inc. and Water Corp., respectively. In addition, the two stocks have a correlation coefficient of -0.25 (note the negative sign). Given the information above, the standard deviation of this portfolio will be___. Question 33 options:

a)

Cannot be determined

b)

7.07%

c)

6.50%

d)

0.50%

e)

5.48%