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The following are estimates for two stocks. The market index has a standard deviation of 0.16 and the risk-free rate is 0.06 . Suppose that
The following are estimates for two stocks. The market index has a standard deviation of 0.16 and the risk-free rate is 0.06 . Suppose that we were to construct a portfolio with proportions: Stock A 0.3 Stock B 0.42 The remaining proportion is invested in Tbills Compute the standard deviation of the portfolio. Round your answer to 4 decimal places. For example if your answer is 3.205%, then please write down 0.0321
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