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Suppose you have a portfolio consisting of two assets, A and B. Stock A has an expected return of 14% and a standard deviation of

Suppose you have a portfolio consisting of two assets, A and B. Stock A has an expected return of 14% and a standard deviation of 31%. Stock B has an expected return of 10% and a standard deviation of 15%. Stocks A and B have a correlation of 0.25. Assuming you invest $7,000 in stock A and $3,000 in stock B, what is the standard deviation of your portfolio?

17.8%

7.8%

23.2%

13.2%

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