The expected return on ZV next year is 12% with a standard deviation of 20%. The expected return on TNA next year is 24% with a stand deviation of 30%. The correlation between the two stocks is -.6. If Hannah makes equal investments in ZV and TNA, what is the standard deviation of her portfolio?

Answers:

a.) 22.47%

b.) 12.04%

c.) 1.45%

d.) 16.00%