Question
The investor is presented with the two following stocks: Expected Return Standard Deviation Stock A 10% 30% Stock B 20% 60% Assume that the correlation
The investor is presented with the two following stocks:
|
| Expected Return | Standard Deviation |
| Stock A | 10% | 30% |
| Stock B | 20% | 60% |
Assume that the correlation coefficient between the stocks is one. What is the standard deviation of the return on the portfolio that invests 30% in stock A?
| A. | 45% | |
| B. | 51% | |
| C. | 36% | |
| D. | 35% |
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Handbook On Corporate Governance In Financial Institutions
Authors: Christine A. Mallin
1st Edition
1784711780, 978-1784711788
