Question
Security As returns have a standard deviation of 4%. Bs have a standard deviation of 8%. The covariance between their returns is +16. A portfolio
Security As returns have a standard deviation of 4%. Bs have a standard deviation of 8%. The covariance between their returns is +16. A portfolio is constructed with 60% of the funds in A and 40% of the funds in B.
What is the risk of the portfolio?
| A. | 3.64% | |
| B. | 4.45% | |
| C. | 5.60% | |
| D. | 4.87% |
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Entrepreneurial Finance
Authors: Steven Rogers
4th Edition
1260461440, 978-1260461442
