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Suppose you want to construct a portfolio using stocks X and Y. Which of the following is true about the standard deviation of the portfolio.

Suppose you want to construct a portfolio using stocks X and Y. Which of the following is true about the standard deviation of the portfolio. The standard deviation of the portfolio will not be higher than the standard deviation of both individual stocks. The standard deviation of the portfolio will be lower than the average of the standard deviation of the individual stocks. The standard deviation of the portfolio will be lower than the standard deviation of both individual stocks We can't say anything about the standard deviation of the portfolio without the correlation coefficient The standard deviation of the portfolio will be higher than the average of the standard deviation of the individual stocks

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