Question
The covariance between JetBlue Airways Corporation's (Ticker: JBLU) returns and Diamondback Energy, Inc.'s (Ticker: FANG) returns is 0.010272727. JetBlue Airways Corporation has a variance of
The covariance between JetBlue Airways Corporation's (Ticker: JBLU) returns and Diamondback Energy, Inc.'s (Ticker: FANG) returns is 0.010272727. JetBlue Airways Corporation has a variance of returns of 0.0126412 while Diamondback Energy, Inc. has a variance of returns of 0.0282081. JetBlue Airways Corporation has an average return of 0.927114 percent while Diamondback Energy, Inc. has an average return of 1.190338 percent. Calculate the standard deviation of returns for a portfolio consisting of 41 percent JetBlue Airways Corporation stock and 59 percent Diamondback Energy, Inc. stock.
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